WEBVTT

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<v Operator>Like
utilities Commission,</v>

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public voting meeting on a
state Thursday October 8th, 2020.

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Today's call is being recorded.

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If you have any objections,
you may disconnect at this time.

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President Batjer, you may proceed.

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<v ->Thank you very much operator</v>

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and good morning everyone.

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We need to establish
a quorum agenda clerk,

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can you please call the roll?

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<v ->Commissioner Shiloma?</v>

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<v ->Present.</v>

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<v ->Commissioner Guzman Aceves.</v>

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<v ->Here.</v>

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<v ->Commissioner Randolph.</v>

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<v ->Here.</v>

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<v ->Commissioner Rechtschaffen.</v>

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<v ->Present.</v>

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<v ->And President Batjer.</v>

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<v ->Here. A quorum
has been established.</v>

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Welcome to the California
public utilities Commission.

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I'm calling this meeting of
October 8th, 2020 public agenda

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number 3472 to order.

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Due to the Coronavirus pandemic

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and the shelter in place order,

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we're conducting today's
business meeting online

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and by remote participation.

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The meeting is live
stream at CPUC's website.

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You can view the meeting at
ww.adminmonitor.com/ca/cpuc.

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Admin monitor is one word.

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Public engagement is
critical to the CPUC process.

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If you wish to make a public comment

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dial into 800-857-1917

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and enter pass code 9899501

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and press star one.

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You will be placed into a tube

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and the operator will take
your name and information.

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You will be called upon to speak

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when we get to the public
comment period in today's agenda.

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If you encountered difficulty calling

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into the public telephone line

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please email
votingmeetinghelp@cpuc.ca.gov,

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voting meeting help is one word.

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At the top of this meeting,

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I wanted to point, sorry, I
had a little background noise.

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At the top of this meeting,

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I wanted to point out that
earlier this week, the CPUC

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in conjunction with the
California independent

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system operator and
the energy Commission

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issued a preliminary root cause analysis

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of the mid August rotating
outages California's experienced.

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We have received a
report on the findings.

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We will receive a report

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on the findings of the
analysis from Pete Scala,

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director for efficiency,
electrification, and procurement

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from our energy division after
the public comment period.

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So I encourage everyone to stay on

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so that they may
receive this information.

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I would also like to take
a moment to recognize

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that this is customer service week

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and give a big shout out to our staff,

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the consumer affairs branch

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or at the front lines every day

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helping consumers
resolve issues big and small

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and deeply moved by your work
to keep Californians connected

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and engaged with CPUC
throughout the COVID-19 pandemic.

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And the wildfires is
spent a tremendous effort

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and a lot of work,

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and you all have been brilliant.

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Ike all Commissioners and I
appreciate the extraordinary

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efforts you do to help
others each and every day.

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California's most
vulnerable consumers need

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and rely on your support,

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especially during these critical times

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for those of you at the
frontline of customer interaction.

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I certainly, I am certain that

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despite whatever challenges we face

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you will continue to
help others with kindness,

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determination, and
commitment to customer service.

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I also wanna thank all of the CPUC staff

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for the work they do to
carry out our responsibilities

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and of this organization
on behalf of all Californians.

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So thank you all.

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We are now at public
comment part of the agenda.

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If you wish to make it public comment,

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and you have already dialed
in to the public comment

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telephone line, please
press star one to get

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into the public comment queue.

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CPUC rules, do not allow
for parties in proceedings

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to speak about open proceedings.

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The public can make comments
addressing items on the consent

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and regular agenda and
including items, not on the agenda.

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Please note that there
will not be public comment

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on items 13, 16, and any item
on the closed session agenda.

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You will have two minutes to speak.

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You will hear a bell
sound when your time is up.

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Please be mindful of
other speakers in the queue

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and keep to your allotted time.

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With that guidance in mind,

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I welcome today's speakers

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and I will now turn to the operator

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to open the public comment
telephone line, operator.

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<v ->Thank you. The public
comment line is now open.</v>

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If you wish to speak during
the public comment period,

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again, press star one, unmute your phone

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and clearly record your name

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and organization when prompted.

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Our first caller is Jim Stewart.

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Sir, you may go ahead.

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<v Jim>Hi, this is Dr. Jim
Stewart and energy consultant,</v>

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and I am calling into
support the a hundred

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electric elected officials.

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He just sent all the Commissioners

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a letter opposing the
increased PCIA charges

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on millions of CCA rate payers.

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The proposed increases
are totally unacceptable.

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As you know, the PCIA has
risen more than 600% since 2013

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in the PG&amp;E service area

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and nearly doubled since the
CPUC changed the rules in 2018,

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that 2018 decision has
some very sorted history.

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The initial proposed decision
drafted by the CPUC staff

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and they LJ was a reasonable
compromise that balanced well

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the needs of mid rate payers
in both ICU, excuse me,

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IOU and CCA areas, but
suddenly at the last minute

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Commissioner Perkins
introduced a alternative resolution

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which completely shafted
the CCA rate payers.

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It set up a horrible situation

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in which now all the IOUs
are proposing drastic increases

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in their TCIA charges.

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And then shortly after
that decision was adopted

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by the Commission, that
Commissioner left to go

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to a very nice maybe six or seven

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figure paying job at an IOU.

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So this is not what you,
as a new Commission

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start with Commissioner
Batjer, President Batjer.

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You can undo this now, fix it.

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(alarm beeps)

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<v ->Thank you Dr. Stewart.</v>

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Operator, the next caller please.

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<v ->Our next caller is Penn Martin.</v>

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So you may go ahead.

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<v Penn>Thank you.</v>

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My name is Penn Martin.

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I'm with sustainable energy group

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in Grass Valley California.

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I'd like to comment on item five

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and on the agenda and
request that it be held.

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We're a small contractor based business.

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We've been around since 2004.

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We only have 15 people in our company.

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I've been doing this for about 11 years

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as a solar designer
of these 600 grid type

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of solar electric systems
that I've done until this year,

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only six of those had
had a battery component.

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If you compare that

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to a period during
this fall in two three

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where three fourths of my
jobs had a battery component

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you can see the effect
that the SGIP program

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has had on our business.

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All of our rebate reservations have had,

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have been equity,
resiliency, budget related.

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So we're very excited

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about the opportunity for
SGIP not only for our business,

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but primarily for our clients.

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My concern is that the program
has been poorly administered

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and it's been chaotic.

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It's had a tremendous
impact on our business

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in terms of the hundreds and hundreds

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of man hours that we have devoted

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to this program in terms of paid staff

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and what will happen with the 11 jobs

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that we have pending
rebate reservation requests

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which represent $483,000
worth of business for us.

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If the well provision is
retroactively rescinded,

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those are all gonna go away.

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That's a severe financial
impact to our business.

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A lot of those people are gonna move

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to generators instead of batteries

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because they can't afford
the batteries without the SGIP.

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These are middle income households.

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Therefore it's gonna
create more fossil fuels.

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I encourage you to hold item five

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so that we can continue the public trust

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in not only our business,

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but also the SGIP program in general,

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because it will severely erode trust

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in our business with our clients.

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If you were send this retroactively.

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Thank you very much for your time.

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<v ->Thank you. Operator the
next caller please, operator.</v>

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Maybe have the next caller please.

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<v ->And I'm sorry.</v>

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Our next caller is Keith Graves.

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Your line is open.

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<v Keith>Thank you.</v>

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Hi, I'm Keith Graves.

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I'm representing plug it in solar.

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This is regarding item number five.

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For the past seven months,

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our team has dedicated the majority

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of our resources toward
rolling out the equity

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resilience budget to our rural market.

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Our clients represents 40%

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of all rebate reservations
submitted in LA County.

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The majority of our clients
are middle income households.

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We spent tens of thousands of dollars

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promoting the equity resilience rebate.

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We have reformed hundreds of jobs,

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site visits to document
our client's eligibility.

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We've done our best to navigate an

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extremely difficult rebate
submission process.

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Over the past six months,
I've heard personally heard

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of stories from property
owners of their hardship.

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They've endured the past 12 months

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and are now experienced again.

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PSPS events in rural
areas are real problem

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and shouldn't be taken lightly.

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How our outages have lasted
over a week in the area by surf.

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Imagine a week with no
power, no power to run the AC,

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no power to pump water
from your water tank

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to your house, no power
to feed your livestock,

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no power to keep your food safe,

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no power to call for help, no power for

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your fire sprinklers,

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no power to energize fire
suppression equipment.

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There are people on the call
today that had lost everything

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their homes, their
dreams, their way of life.

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I convinced that utilities have no idea

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of the impact that these
new PSPS events have had

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on their rate payers.

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The equity resilience budget
is a brilliant program as is,

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and it's helping adoption
rates with both batteries

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and solar, which
sort of the entire state.

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To change the program
six months into the program

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would only undermine the purpose

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and integrity of the program,

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and then to potentially
make matters worse,

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making a possible decision

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retroactive undermine
every contractor's effort

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to date threatening thousands

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of existing contractual agreements

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between installers and homeowners.

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I plead with you.

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Please let us do our job.

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Please allow us to help those folks

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who the program was intended to help.

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Please hold on items
by further consideration.

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Thank you.

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<v ->Thank you, caller.</v>

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The next caller, please operator.

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<v ->Our next caller is
Matt Collenguard.</v>

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So you may go ahead.

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<v Matt>I speak today on
behalf of radius BMT, LLC</v>

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and opposition to agenda item seven,

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the renewable market
adjust entire program

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or California's renewable
portfolio standard program.

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Brilliant began developing
projects for the REMAT program

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in 2016, just a year before
the remit was suspended.

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The prospect of reopening
RMAT after nearly three years

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of suspension should
be exciting for radiant

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at this proposed decision
scuttle four years of work.

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The proposed decision is inconsistent

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with Commission precedent.

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The proposed decision premise is

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that the existing REMAT pricing

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mechanism must be modified to comply

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with the winding Creek decision.

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However on August
27, just six weeks ago,

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the Commission found that
the REMAT pricing mechanism

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is legal, inappropriate.

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When it is approved, the biomap program

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to find the opposite
today threatened biomap,

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a vitally important program.

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The proposed decision says as much

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when it explains why Biomet

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can use the pricing
mechanism but remit can't

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because Biomet addresses
matters of acute state concern.

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Of course, REMAT also addresses matters

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of acute state concern

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and is required by state law,

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but to the Commission to find today

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that rematch can't use the
same pricing mechanism

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as Biomet will threaten
both important programs.

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And it will suggest that the objectives

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of REMAT are not matters
of acute state concern.

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Further, all but one party
commented on a staff proposal

00:15:06.080 --> 00:15:08.650
on Cory green that did
not need to be modified

00:15:08.650 --> 00:15:10.520
in order to be reopened.

00:15:10.520 --> 00:15:12.495
It is within the
Commissioner's authority.

00:15:12.495 --> 00:15:14.550
Now that the new purpose standard

00:15:14.550 --> 00:15:18.223
off her contract has been
approved to simply reopen remao.

00:15:19.070 --> 00:15:20.550
So why are we here today?

00:15:20.550 --> 00:15:23.420
If the Commission could have
reopened three months ago,

00:15:23.420 --> 00:15:25.750
once the public contract was approved,

00:15:25.750 --> 00:15:28.500
why did the Commission
change course with this proceeding

00:15:28.500 --> 00:15:31.250
and is now considered
a drastic changes today

00:15:31.250 --> 00:15:32.610
which may threaten biomap

00:15:32.610 --> 00:15:36.039
but will damage Lynette,
please don't note today

00:15:36.039 --> 00:15:38.140
and instead reopened as it was.

00:15:38.140 --> 00:15:40.640
(alarm beeps)

00:15:44.180 --> 00:15:46.803
<v ->Thank you. Operator
the next caller, please.</v>

00:15:49.190 --> 00:15:52.283
<v ->Our next caller is Patrick
Kearns, so you may go ahead.</v>

00:15:55.440 --> 00:15:56.350
<v Patrick>Good morning.</v>

00:15:56.350 --> 00:15:58.420
My name is Patrick Kearns,

00:15:58.420 --> 00:16:02.097
respectfully address the
presidentary Commissioners

00:16:02.097 --> 00:16:06.570
in an attempt to provide
an individual rate payers

00:16:06.570 --> 00:16:10.350
perspective after
having tried to participate

00:16:10.350 --> 00:16:14.783
in CPUC regulatory actions
for the past three years,

00:16:16.897 --> 00:16:20.840
my comments are prompted to
make the Commissioners aware

00:16:20.840 --> 00:16:25.840
of their administrative
judiciaries actions inhibiting

00:16:26.110 --> 00:16:29.375
and intimidating rate
payers participation

00:16:29.375 --> 00:16:31.533
in the Commission's activity.

00:16:32.910 --> 00:16:36.240
I would try to bring previous actions

00:16:36.240 --> 00:16:41.230
by the administrative
judiciary that have disrupted

00:16:41.230 --> 00:16:44.283
rate payers complete participation.

00:16:47.290 --> 00:16:50.431
Rate payers are told
they are required to sign

00:16:50.431 --> 00:16:55.431
an incomplete unenforceable
nondisclosure agreement

00:16:55.527 --> 00:17:00.527
which has just become
of interest in current events

00:17:00.733 --> 00:17:05.197
prepared by the regulated IOU,

00:17:05.197 --> 00:17:10.197
but introduce as a required
action of the rate payers

00:17:11.470 --> 00:17:15.190
to participate in a settlement
conference required

00:17:15.190 --> 00:17:20.190
by the PTED attorney,
totally without basis

00:17:23.054 --> 00:17:27.000
in the rules and regulations
guiding regulatory processes

00:17:27.000 --> 00:17:32.000
of the CPUC rule 12.6 with standing.

00:17:35.210 --> 00:17:40.210
The IOU is regulating
the proceeding actions

00:17:43.230 --> 00:17:48.140
by the CPED rather than the
CPED deregulating the IOU.

00:17:50.215 --> 00:17:53.330
The executive director changes a water

00:17:53.330 --> 00:17:55.974
and audit division denial

00:17:55.974 --> 00:18:00.020
of an advice letter that
requested release of funds

00:18:00.020 --> 00:18:05.020
for a memorandum account,
an account that never existed.

00:18:05.850 --> 00:18:07.320
That was misnamed.

00:18:07.320 --> 00:18:08.910
That was misidentified

00:18:08.910 --> 00:18:10.950
throughout the proceeding that

00:18:10.950 --> 00:18:14.270
granted the non-existent recovery

00:18:14.270 --> 00:18:16.200
from the memorandum accounts

00:18:18.350 --> 00:18:22.010
without terminating the particulars

00:18:22.010 --> 00:18:26.400
that were in the proceeding record.

00:18:26.400 --> 00:18:28.400
<v ->Mr. Kearn, could
you wrap that please?</v>

00:18:28.400 --> 00:18:30.570
You're beyond your two minute timeframe.

00:18:30.570 --> 00:18:32.160
Could you please say something?

00:18:32.160 --> 00:18:35.080
<v ->Okay, well yes, thank
you Mrs. President.</v>

00:18:35.080 --> 00:18:38.960
I intend to try to bring these issues

00:18:38.960 --> 00:18:41.240
before the Commissioners

00:18:41.240 --> 00:18:44.440
because I believe the
Commissioners maybe unaware

00:18:44.440 --> 00:18:46.740
of the administrative
judiciaries action.

00:18:46.740 --> 00:18:50.100
So I will try to come
back for future meetings

00:18:50.100 --> 00:18:54.150
and I am supplying these
comments to the Governor,

00:18:54.150 --> 00:18:56.720
to the oversight committees of the state

00:18:56.720 --> 00:19:00.570
and the assembly and
to the candidates running

00:19:00.570 --> 00:19:02.527
for state office at the present time.

00:19:02.527 --> 00:19:05.450
And I thank you for the
privilege of addressing you

00:19:05.450 --> 00:19:09.583
and trying to bring these
problems before you.

00:19:10.540 --> 00:19:13.190
<v ->Hey, we'll look for that
correspondence. Thank you.</v>

00:19:14.200 --> 00:19:15.900
Operator, the next caller, please.

00:19:17.360 --> 00:19:19.920
<v ->Our next caller is
Pamela Chavez Hudson.</v>

00:19:19.920 --> 00:19:20.770
You may go ahead.

00:19:24.530 --> 00:19:26.160
<v Pamela>Yes, I appreciate it.</v>

00:19:26.160 --> 00:19:29.870
Thank you much to the California
public utilities Commission

00:19:29.870 --> 00:19:34.450
for giving me the time
to act in Aqua Dulcey

00:19:34.450 --> 00:19:38.750
in the antelope Valley
middle class disabled one,

00:19:38.750 --> 00:19:40.083
living on social security.

00:19:41.252 --> 00:19:44.974
I rent a lot of my neighbors
who are retired people

00:19:44.974 --> 00:19:47.390
who have been, I'm sorry

00:19:47.390 --> 00:19:50.633
this is item number five on the desk.

00:19:51.870 --> 00:19:56.270
We were notified yesterday that our app

00:19:58.995 --> 00:20:03.340
for the batteries, from the
Edison, we were being questioned

00:20:03.340 --> 00:20:06.590
and that they were going
to offer them tilt income.

00:20:06.590 --> 00:20:11.590
People out of us cannot
afford the thousand dollars.

00:20:12.490 --> 00:20:15.485
It cost a Tesla car home.

00:20:15.485 --> 00:20:19.150
Well in very air areas.

00:20:19.150 --> 00:20:22.650
Our animals are dependent on that water.

00:20:22.650 --> 00:20:25.290
And in the case of the many numerous

00:20:25.290 --> 00:20:30.259
dangerous wild that we've
been experienced last three years

00:20:30.259 --> 00:20:32.203
that continue work.

00:20:33.380 --> 00:20:37.880
We are often times not
given any room for the Hill

00:20:39.090 --> 00:20:43.323
and are unable to save our home.

00:20:44.420 --> 00:20:46.396
You're a home in mint Canyon was

00:20:46.396 --> 00:20:50.785
they were unable to fight this fire.

00:20:50.785 --> 00:20:55.785
Their electricity was turned that

00:20:56.840 --> 00:20:59.980
outage from essence saved their home.

00:20:59.980 --> 00:21:02.803
They had to fight it.

00:21:04.456 --> 00:21:07.113
This is extremely dangerous.

00:21:08.490 --> 00:21:13.300
Our first foray into
story, and quite honestly

00:21:13.300 --> 00:21:17.530
police since we're off for
this, many of us are asking

00:21:17.530 --> 00:21:20.440
given the opportunity
to see if they work for us.

00:21:20.440 --> 00:21:23.220
If they don't, then we
probably go further with

00:21:23.220 --> 00:21:27.635
Edwards in the future
and our water supply

00:21:27.635 --> 00:21:30.480
which is very, very dangerous.

00:21:30.480 --> 00:21:34.480
We've been off for this six months.

00:21:34.480 --> 00:21:39.480
Now we've much suppliers.

00:21:42.734 --> 00:21:46.563
Please take off lives.

00:21:48.317 --> 00:21:50.817
(alarm beeps)

00:21:52.300 --> 00:21:54.683
<v ->Thank you, next caller please.</v>

00:21:56.185 --> 00:21:59.768
Thank you, operator
the next caller please.

00:22:00.816 --> 00:22:02.797
<v ->Our next caller is
from David Lumon,</v>

00:22:02.797 --> 00:22:03.993
you may go ahead, sir.

00:22:05.660 --> 00:22:06.520
<v David>Hi, good morning.</v>

00:22:06.520 --> 00:22:08.793
I wanna thank you for the opportunity

00:22:08.793 --> 00:22:10.940
to speak with you this morning.

00:22:10.940 --> 00:22:13.570
I'm a homeowner, I'm
in Northern LA County

00:22:13.570 --> 00:22:15.963
in a high fire rural area.

00:22:16.816 --> 00:22:21.816
Last year, our power had
gotten shut off on and off

00:22:21.930 --> 00:22:25.500
throughout the season, basically

00:22:25.500 --> 00:22:30.500
for upgrading power lines,
infrastructure and power poles.

00:22:32.100 --> 00:22:35.313
And we even had a
whole new lines installed.

00:22:36.450 --> 00:22:41.150
So going into last
fall, we thought great.

00:22:41.150 --> 00:22:44.769
You know, we have upgraded systems

00:22:44.769 --> 00:22:47.060
you know, we won't have
a problem losing electricity.

00:22:47.060 --> 00:22:51.520
Well, ICE never told us that we

00:22:51.520 --> 00:22:56.520
are gonna be having to endure
a preemptive power shutoff.

00:22:57.089 --> 00:23:01.680
So our home actually
burned down last October,

00:23:01.680 --> 00:23:06.088
October 24th, we're on
a Orwell with a water tank

00:23:06.088 --> 00:23:10.140
and we needed
electricity to pump basically

00:23:10.140 --> 00:23:13.680
to pump water from
the tank to the house.

00:23:13.680 --> 00:23:14.975
I was home that day.

00:23:14.975 --> 00:23:16.603
So on 2:00 in the afternoon,

00:23:17.570 --> 00:23:19.900
I could have helped fight the fire.

00:23:19.900 --> 00:23:21.103
I had no water pressure.

00:23:22.190 --> 00:23:24.033
It was our home was a total loss.

00:23:25.290 --> 00:23:29.630
And I just would like
to communicate maybe

00:23:29.630 --> 00:23:33.567
to all of you to try to
understand how vital it is

00:23:33.567 --> 00:23:36.960
for us to have power,
to have the basics for life.

00:23:36.960 --> 00:23:38.870
We have animals as well.

00:23:38.870 --> 00:23:41.893
So we need water
for not only our family,

00:23:41.893 --> 00:23:46.893
but our animals and these
power shutoffs can go on for days.

00:23:49.410 --> 00:23:54.410
We were really disappointed
that we found this SGIP program

00:23:54.790 --> 00:23:57.320
by accident, us being fire victims.

00:23:57.320 --> 00:24:01.649
We would have hoped to
be notified for this benefit

00:24:01.649 --> 00:24:03.963
because we're in the
process of rebuilding.

00:24:08.390 --> 00:24:11.190
As of right now, we have
a pending reservation.

00:24:11.190 --> 00:24:12.623
We're single income.

00:24:13.536 --> 00:24:14.369
(alarm beeps)

00:24:14.369 --> 00:24:15.556
I'll finish up.

00:24:15.556 --> 00:24:17.520
We're single income, we're middle income

00:24:17.520 --> 00:24:19.920
and we will not be
able to afford a system

00:24:19.920 --> 00:24:22.116
like this without assistance.

00:24:22.116 --> 00:24:25.852
Thank you very much.

00:24:25.852 --> 00:24:27.440
<v ->Thank you, sir.</v>

00:24:27.440 --> 00:24:29.633
Operator, the next caller, please.

00:24:31.717 --> 00:24:32.790
<v ->And before we
go to the next caller,</v>

00:24:32.790 --> 00:24:34.980
if you wish to speak during
the public comment period,

00:24:34.980 --> 00:24:37.410
please press star one,
unmute your phone,

00:24:37.410 --> 00:24:38.760
and clearly provide your name

00:24:38.760 --> 00:24:41.140
and organization when prompted.

00:24:41.140 --> 00:24:42.870
Our next caller is Julie Belkey,

00:24:42.870 --> 00:24:45.020
with a Baker electrical energy.

00:24:45.020 --> 00:24:45.970
You might go ahead.

00:24:47.750 --> 00:24:48.583
<v Julie>Good morning.</v>

00:24:48.583 --> 00:24:50.010
Thank you for the opportunity to speak

00:24:50.010 --> 00:24:51.970
to the Commission today.

00:24:51.970 --> 00:24:54.589
This is in regards to
item five on the agenda.

00:24:54.589 --> 00:24:56.570
I'm the SDF administrator

00:24:56.570 --> 00:25:00.156
at Baker electric home energy
based in San Diego County.

00:25:00.156 --> 00:25:04.553
And I'd like to request
that item five be hel.

00:25:05.430 --> 00:25:08.020
While Baker electric
home energy is not new

00:25:08.020 --> 00:25:10.720
to installing energy storage systems.

00:25:10.720 --> 00:25:14.010
We were new to the concept
of backing up well pumps

00:25:14.010 --> 00:25:18.461
when the resiliency program
was launched earlier this year.

00:25:18.461 --> 00:25:21.630
We invested a significant amount of time

00:25:21.630 --> 00:25:25.970
and resources learning how
to properly backup well pumps

00:25:25.970 --> 00:25:27.310
with the different LRAS kind

00:25:27.310 --> 00:25:30.210
of start at voltage
that can trip the battery

00:25:30.210 --> 00:25:33.760
in the event of a grid outage or a PSPS.

00:25:33.760 --> 00:25:36.020
Additionally, we invested a great deal

00:25:36.020 --> 00:25:37.277
of marketing resources

00:25:37.277 --> 00:25:39.479
and to targeting our real customers

00:25:39.479 --> 00:25:44.190
that reside in a high
fire district that rely 100%

00:25:44.190 --> 00:25:46.723
on well pumps for their
homes, water supplies.

00:25:47.610 --> 00:25:51.050
Now through this effort
to date, we have provided

00:25:51.050 --> 00:25:54.862
that backup solution to
142 resiliency customers

00:25:54.862 --> 00:25:59.090
with 46 of them being
well pump customers.

00:25:59.090 --> 00:26:01.758
And that amounts to about $1.3 million

00:26:01.758 --> 00:26:06.312
with an additional 11
pending well pump reservation

00:26:06.312 --> 00:26:09.078
totalling about $400,000.

00:26:09.078 --> 00:26:12.330
Now this is not an
insignificant amount of money

00:26:12.330 --> 00:26:13.743
for our organization.

00:26:14.740 --> 00:26:19.342
Regarding item five, many
of our well pump customers

00:26:19.342 --> 00:26:22.536
likely are not gonna fall
in the low income category.

00:26:22.536 --> 00:26:25.550
However, they have met
all the current resiliency

00:26:25.550 --> 00:26:29.490
requirements of the
2020 S chip handbook.

00:26:29.490 --> 00:26:33.270
Most of them are in a rural
location with only the well pump

00:26:33.270 --> 00:26:36.530
as a water resource to
provide water to their home

00:26:36.530 --> 00:26:40.290
and any livestock as well
as help fight any wildfires.

00:26:40.290 --> 00:26:42.782
Therefore, this program
is definitely still essential

00:26:42.782 --> 00:26:44.700
to quality of life.

00:26:44.700 --> 00:26:46.460
Any further changes to the current

00:26:46.460 --> 00:26:49.890
resiliency program will
cause significant losses

00:26:49.890 --> 00:26:51.730
to both take our electric home energy

00:26:51.730 --> 00:26:56.090
and our customers who have
been so helpful, hopeful, sorry,

00:26:56.090 --> 00:26:59.090
in receiving this life saving benefit.

00:26:59.090 --> 00:27:01.070
Item five would defeat the sole purpose

00:27:01.070 --> 00:27:03.860
of the resiliency
incentive as the whole idea

00:27:03.860 --> 00:27:06.190
behind this incentive
is to help customers

00:27:06.190 --> 00:27:07.895
who are affected by power shutoffs

00:27:07.895 --> 00:27:11.980
during wildfires or other
public safety power shut off.

00:27:11.980 --> 00:27:14.541
Alternatively, it also
reduces the grid man

00:27:14.541 --> 00:27:16.820
that will help prevent
imminent power outages

00:27:16.820 --> 00:27:18.233
during times of high youth.

00:27:19.240 --> 00:27:23.260
Changes to item five if
perhaps given a specific date

00:27:23.260 --> 00:27:26.110
to begin the new
requirements we can work with.

00:27:26.110 --> 00:27:28.450
However, set in retroactive changes

00:27:28.450 --> 00:27:33.000
to the program are unfair
to all parties involved.

00:27:33.000 --> 00:27:35.590
Now 2020 has already
been challenging enough

00:27:35.590 --> 00:27:38.600
without further let downs
and disappointments.

00:27:38.600 --> 00:27:41.160
We sincerely asked
that item five be held

00:27:41.160 --> 00:27:43.990
or at least the retro active portion

00:27:43.990 --> 00:27:47.600
of the application not be
included in this new ruling.

00:27:47.600 --> 00:27:48.433
Thank you.

00:27:51.480 --> 00:27:54.553
<v ->Thank you Ms. Silky,
operator the next caller please.</v>

00:27:56.891 --> 00:27:59.110
<v ->Our next caller is
Nathaniel Johnson.</v>

00:27:59.110 --> 00:28:00.210
You may go ahead, sir.

00:28:01.760 --> 00:28:03.730
<v Nathaniel>My name
is Nathaniel Johnson.</v>

00:28:03.730 --> 00:28:05.760
I'm the solar advisor for pace Avenue.

00:28:05.760 --> 00:28:09.038
I want to further what a lot of
other people have said about

00:28:09.038 --> 00:28:12.899
not instituting item five

00:28:12.899 --> 00:28:17.316
and canceling the SGF
equity resiliency rebate

00:28:17.316 --> 00:28:18.990
for well pump customers,

00:28:18.990 --> 00:28:20.350
or at least holding off on the

00:28:20.350 --> 00:28:22.173
retroactively canceling of it.

00:28:23.080 --> 00:28:26.390
A lot of our customers
are middle income people

00:28:26.390 --> 00:28:29.140
that can not afford the
high cost of batteries

00:28:29.140 --> 00:28:32.698
with climate change and
the increase in temperature

00:28:32.698 --> 00:28:37.020
and the increase in power
shutoffs during the hottest times

00:28:37.020 --> 00:28:41.540
of year, when people
need water and need power

00:28:41.540 --> 00:28:45.450
for refrigeration, for
their animals to fight fires

00:28:45.450 --> 00:28:48.094
we personally have customers
who've lost their homes

00:28:48.094 --> 00:28:49.432
and these fires

00:28:49.432 --> 00:28:54.010
or at least have fires come
dangerously close to their homes

00:28:54.010 --> 00:28:56.819
and need a way to fight off these fires.

00:28:56.819 --> 00:29:01.370
In the future if the
Commission wants to change

00:29:01.370 --> 00:29:04.076
the requirements for the S chip program

00:29:04.076 --> 00:29:06.235
and give us as developers notice

00:29:06.235 --> 00:29:09.040
that is something that's fair

00:29:09.040 --> 00:29:12.250
but to retroactively cancel
all of these agreements

00:29:12.250 --> 00:29:15.558
with needy customers during
this really challenging time,

00:29:15.558 --> 00:29:18.800
I believe it's something
that should not be instituted.

00:29:18.800 --> 00:29:20.453
And thank you so much. Bye.

00:29:22.656 --> 00:29:26.947
<v ->Thank you Mr. Johnson,
operator the next caller please.</v>

00:29:28.310 --> 00:29:31.000
<v ->The next caller
as David Richard.</v>

00:29:31.000 --> 00:29:32.050
You may go ahead sir.

00:29:35.800 --> 00:29:36.633
<v David>Hi, there.</v>

00:29:36.633 --> 00:29:39.260
Thank you so much for the
opportunity to speak today.

00:29:39.260 --> 00:29:42.970
My name is David Richard, I'm
a co owner of photon brothers.

00:29:42.970 --> 00:29:44.330
We are electrical contractors

00:29:44.330 --> 00:29:46.379
specialize in solar and energy storage.

00:29:46.379 --> 00:29:49.950
I'm here to address
item five on the agenda.

00:29:49.950 --> 00:29:53.760
Like many others have
mentioned it would be detrimental

00:29:53.760 --> 00:29:55.320
to our small business.

00:29:55.320 --> 00:29:58.240
We have employed 70 people here

00:29:58.240 --> 00:29:59.910
on the central coast of California.

00:29:59.910 --> 00:30:02.816
When I first heard about this program,

00:30:02.816 --> 00:30:06.540
it was the same sign that COVID hit

00:30:06.540 --> 00:30:08.740
starting to shut down our economy.

00:30:08.740 --> 00:30:09.776
And I had choice.

00:30:09.776 --> 00:30:14.776
I had opportunity to
okay, down lay off books

00:30:15.340 --> 00:30:17.996
like many of my business owners did

00:30:17.996 --> 00:30:20.900
or pivot and dive into
this new opportunity.

00:30:20.900 --> 00:30:23.350
But the SGIP program was offering.

00:30:23.350 --> 00:30:24.860
We went all in.

00:30:24.860 --> 00:30:26.810
We hired 30% more staff.

00:30:26.810 --> 00:30:28.358
We picked up good tape people

00:30:28.358 --> 00:30:31.770
some industries
dismantled by this pandemic.

00:30:31.770 --> 00:30:33.690
We risked profits from last year

00:30:33.690 --> 00:30:35.876
pouring time and capital
into this opportunity.

00:30:35.876 --> 00:30:38.520
I'm pleading the Commission to hold

00:30:38.520 --> 00:30:39.610
off on making these changes.

00:30:39.610 --> 00:30:42.194
Oh, that's your actively
change this program

00:30:42.194 --> 00:30:44.980
is in calculable.

00:30:44.980 --> 00:30:47.260
The amount of time and energy,

00:30:47.260 --> 00:30:50.057
my team staff I've spent
on these applications

00:30:50.057 --> 00:30:55.057
over the last year, we
have nearly 300 applications

00:30:55.393 --> 00:30:59.840
and half of them would be
affected by this program change.

00:30:59.840 --> 00:31:02.840
It would be $5 million
in revenue taking away

00:31:02.840 --> 00:31:06.770
from my small business, the
customer CRN central coast.

00:31:06.770 --> 00:31:08.210
We're not high income.

00:31:08.210 --> 00:31:09.900
We're living in rural areas.

00:31:09.900 --> 00:31:11.240
Middle-income folks.

00:31:11.240 --> 00:31:13.980
This is one of the most
expensive place to live

00:31:13.980 --> 00:31:17.423
with very low income households.

00:31:18.480 --> 00:31:20.359
We have one of the worst income ratios

00:31:20.359 --> 00:31:23.383
in the country
compared to cost of living.

00:31:24.270 --> 00:31:26.019
These customers need our phones.

00:31:26.019 --> 00:31:28.910
Our community needs these jobs.

00:31:28.910 --> 00:31:32.090
Please consider us
hold off on item five.

00:31:32.090 --> 00:31:35.437
Thank you so much for
your time and consideration.

00:31:36.636 --> 00:31:40.136
<v ->Thank you, operator
next caller, please.</v>

00:31:41.302 --> 00:31:43.030
<v ->I made sure there is no collers</v>

00:31:43.030 --> 00:31:45.030
in the public comment line at this time.

00:31:46.571 --> 00:31:49.463
<v ->Okay. Thank you operator.</v>

00:31:51.579 --> 00:31:52.577
With no more callers on the line,

00:31:52.577 --> 00:31:54.353
the public comment period is now closed.

00:31:56.280 --> 00:32:00.220
Moving on typically, management reports

00:32:00.220 --> 00:32:01.640
on administrative matters

00:32:01.640 --> 00:32:06.440
or later in the meeting agenda
under item 18, deep scholar

00:32:06.440 --> 00:32:09.580
director of efficiency,
electrification, and Pecuremen

00:32:09.580 --> 00:32:13.530
for the energy division plans
to provide a presentation

00:32:13.530 --> 00:32:17.000
on the root cause
analysis of the rotating

00:32:17.000 --> 00:32:21.710
electricity outages that
took place in August.

00:32:21.710 --> 00:32:24.900
I'm going to move item 18 up

00:32:24.900 --> 00:32:27.420
and request that director Scala provide

00:32:27.420 --> 00:32:30.830
his management report
earlier in the agenda.

00:32:30.830 --> 00:32:33.990
As I mentioned in the day's
opening comments, on Tuesday

00:32:33.990 --> 00:32:37.667
the CPC, the California
independent system operator

00:32:37.667 --> 00:32:40.570
and the California energy issued

00:32:40.570 --> 00:32:43.020
a preliminary root cause analysis

00:32:43.020 --> 00:32:47.910
of the August, 2020 each
storm and rotating outages.

00:32:47.910 --> 00:32:51.920
As director Scala will
present in greater detail,

00:32:51.920 --> 00:32:54.230
the joint agency effort found that

00:32:54.230 --> 00:32:57.050
our resource planning
targets have not evolved

00:32:57.050 --> 00:33:00.310
to keep pace with the
acceleration of climate change

00:33:00.310 --> 00:33:03.010
and related extreme weather events.

00:33:03.010 --> 00:33:06.450
We also recognized
the unintended failure

00:33:06.450 --> 00:33:08.970
of certain energy market practices

00:33:08.970 --> 00:33:12.693
during the stress conditions
of the period in question.

00:33:12.693 --> 00:33:16.980
The combination of these
factors was an extraordinary event

00:33:16.980 --> 00:33:19.356
but it is our responsibility and intent

00:33:19.356 --> 00:33:21.200
the plan for such event,

00:33:21.200 --> 00:33:24.000
which are becoming increasingly common

00:33:24.000 --> 00:33:27.343
and they world rapidly being
impacted climate change.

00:33:28.200 --> 00:33:30.230
In our briefing to Governor Newsome,

00:33:30.230 --> 00:33:33.820
my fellow agency leaders,
and I recognized a new,

00:33:33.820 --> 00:33:36.950
a shared responsibility
for power outages

00:33:36.950 --> 00:33:40.113
many Californians unnecessarily endured.

00:33:41.520 --> 00:33:43.750
The findings of the preliminary analysis

00:33:43.750 --> 00:33:46.220
or this shared responsibility

00:33:46.220 --> 00:33:49.260
and give greater
definition to the actions

00:33:49.260 --> 00:33:51.350
that should have been taken to avoid

00:33:51.350 --> 00:33:55.050
or minimize the impact
to those we serve.

00:33:55.050 --> 00:33:56.610
The findings and recommendations

00:33:56.610 --> 00:34:00.160
of this preliminary analysis
will guide our agencies

00:34:00.160 --> 00:34:03.770
to ensuring the events
of August 14th and 15th

00:34:03.770 --> 00:34:05.790
do not reoccur.

00:34:05.790 --> 00:34:07.160
As we move forward,

00:34:07.160 --> 00:34:10.090
I want to be very clear
about our direction.

00:34:10.090 --> 00:34:12.260
Our agency's remained unwavering

00:34:12.260 --> 00:34:14.810
in our commitment to clean energy

00:34:14.810 --> 00:34:19.594
and to our climate goals
and nothing in our root cause

00:34:19.594 --> 00:34:22.100
analysis leads us to
second guess a clean

00:34:22.100 --> 00:34:25.890
reliable and affordable energy future.

00:34:25.890 --> 00:34:27.980
For years, our state has invested

00:34:27.980 --> 00:34:31.290
in research that has
charted a path grounded

00:34:31.290 --> 00:34:33.979
in science and
technological feasibility.

00:34:33.979 --> 00:34:35.720
We have solutions.

00:34:35.720 --> 00:34:38.710
We must now accelerate the pace

00:34:38.710 --> 00:34:40.810
of their implementation to do,

00:34:40.810 --> 00:34:44.823
to better match the, our
changing environment.

00:34:45.810 --> 00:34:47.197
We remain on the right path

00:34:47.197 --> 00:34:50.420
and we will continue
to enhance our focus

00:34:50.420 --> 00:34:52.783
on reliability as we move forward.

00:34:53.620 --> 00:34:57.340
To propel us to CPUC
we'll initiate expedited

00:34:57.340 --> 00:35:00.430
regulatory initiatives
in the coming weeks

00:35:00.430 --> 00:35:02.590
that will strengthen energy reliability

00:35:02.590 --> 00:35:05.310
in the state and avoid reoccurance

00:35:05.310 --> 00:35:08.777
of the August events next
year and in future years.

00:35:08.777 --> 00:35:10.490
As I mentioned earlier

00:35:10.490 --> 00:35:14.330
the extreme heat storm in
August was an extraordinary

00:35:14.330 --> 00:35:19.330
one in 35 year event will
unfortunately become more common.

00:35:21.580 --> 00:35:24.810
It is upon us to adjust
our planning, procurement,

00:35:24.810 --> 00:35:28.314
and market policies to meet
these changing circumstance,

00:35:28.314 --> 00:35:33.314
circumstances, and ensure
that our energy future is clean

00:35:33.350 --> 00:35:37.670
reliable, and affordable
for all Californians.

00:35:37.670 --> 00:35:40.318
I look forward to working
with my fellow Commissioners,

00:35:40.318 --> 00:35:45.240
our staff our sister agencies,
and our stakeholder community

00:35:45.240 --> 00:35:46.803
and realizing these goals.

00:35:48.050 --> 00:35:50.270
Lastly, and very importantly,

00:35:50.270 --> 00:35:52.380
I would like to recognize the staff

00:35:52.380 --> 00:35:54.230
that contributed to this report

00:35:54.230 --> 00:35:56.540
and has worked, each
and every one of them

00:35:56.540 --> 00:36:00.570
has worked tirelessly since
the 14th and 15th of August.

00:36:00.570 --> 00:36:05.570
And Randolph, Pete Scala,
Michelle Peto, Hyper Arno,

00:36:06.620 --> 00:36:11.620
Simone Brent, Mary
Michelle Thompson, Jennifer

00:36:11.979 --> 00:36:16.979
April McQueen and my chief
of staff Shannon O'Rourke.

00:36:20.240 --> 00:36:22.030
Thank you very much all of you

00:36:22.030 --> 00:36:24.779
for so how hard you have worked

00:36:24.779 --> 00:36:27.233
and for your commitment
to public service.

00:36:30.330 --> 00:36:32.910
Now I will ask director Scala

00:36:32.910 --> 00:36:37.123
to begin the presentation, Scala.

00:36:38.258 --> 00:36:39.262
<v ->Hello everyone.</v>

00:36:39.262 --> 00:36:40.626
Thank you, President Batjer.

00:36:40.626 --> 00:36:41.680
Can you hear me?

00:36:41.680 --> 00:36:43.578
<v ->Yes, you're great. Thank you.</v>

00:36:43.578 --> 00:36:48.190
<v ->Okay, super, I'm a
energy division director</v>

00:36:48.190 --> 00:36:50.560
of efficiency, electrification
and procurement

00:36:50.560 --> 00:36:54.713
and I led the PUC teams
work on this joint agency report.

00:36:54.713 --> 00:36:58.683
And is, can you pull
the report up please?

00:37:00.040 --> 00:37:01.090
The slide deck rider.

00:37:04.490 --> 00:37:05.323
Thank you.

00:37:08.180 --> 00:37:09.380
Okay. Next slide please.

00:37:13.680 --> 00:37:15.300
The preliminary report finds that

00:37:15.300 --> 00:37:17.330
there were three overarching root causes

00:37:17.330 --> 00:37:18.600
of the rotating outages

00:37:18.600 --> 00:37:21.970
and stress grid conditions
during the August heat storm.

00:37:21.970 --> 00:37:24.260
I'll expand on these in
the following few slides,

00:37:24.260 --> 00:37:28.230
but in summary first
the current reliability

00:37:28.230 --> 00:37:31.220
planning process is not
designed to address a one

00:37:31.220 --> 00:37:34.462
in 35 year heat event as
president Patrick mentioned.

00:37:34.462 --> 00:37:39.160
Second planning targets
in the transition to a reliable,

00:37:39.160 --> 00:37:41.420
clean and affordable energy resource mix

00:37:41.420 --> 00:37:44.490
have not added sufficient
resources to meet demand

00:37:44.490 --> 00:37:47.343
in the early evening hours
of extremely hot days.

00:37:48.530 --> 00:37:50.200
And third, several practices

00:37:50.200 --> 00:37:53.140
in the energy market
exacerbated the supply challenges

00:37:53.140 --> 00:37:54.733
under high stress conditions.

00:37:56.381 --> 00:37:58.420
The report identify several other

00:37:58.420 --> 00:37:59.800
discrete contributing factors

00:37:59.800 --> 00:38:02.473
but these were the three
primary causes identified.

00:38:04.910 --> 00:38:06.110
Okay, next slide please.

00:38:08.840 --> 00:38:11.200
This figure illustrates what
we mean when we refer

00:38:11.200 --> 00:38:14.348
to the August heat storm
as a one and 35 year event,

00:38:14.348 --> 00:38:17.730
it's a, each of the squiggly lines

00:38:17.730 --> 00:38:20.070
on this figure represents
the August temperatures

00:38:20.070 --> 00:38:22.033
for one of the past 35 years.

00:38:23.012 --> 00:38:27.830
The orange line depicts the
temperatures for this August.

00:38:27.830 --> 00:38:30.530
And as you can see, there's
a pretty dramatic outlier.

00:38:31.960 --> 00:38:35.182
The second high to Saugus
was in 2015, the dark line.

00:38:35.182 --> 00:38:38.210
And it was well below this,

00:38:38.210 --> 00:38:40.573
these persistent August temperatures.

00:38:43.310 --> 00:38:46.050
California experienced four
out of five of the hottest days

00:38:46.050 --> 00:38:48.220
since 1985 during the peak storm

00:38:48.220 --> 00:38:50.300
all within a week of one another.

00:38:50.300 --> 00:38:52.550
And this was not limited to California.

00:38:52.550 --> 00:38:54.940
Extreme record breaking
heat was being experienced

00:38:54.940 --> 00:38:57.530
across the Western us, which impacted

00:38:57.530 --> 00:39:00.293
our ability to procure
additional resource import.

00:39:02.270 --> 00:39:03.990
Our current processes are planned,

00:39:03.990 --> 00:39:06.460
are based on planning for
an average weather year

00:39:06.460 --> 00:39:08.630
with an additional
cushion to account for

00:39:08.630 --> 00:39:10.760
relatively higher temperatures

00:39:10.760 --> 00:39:13.820
but not for a sustained
extreme West wide heat storm

00:39:13.820 --> 00:39:15.893
as was experienced in August.

00:39:17.130 --> 00:39:20.374
So while the report does not
identify a single root cause,

00:39:20.374 --> 00:39:23.500
this extreme event was
the underlying condition

00:39:24.532 --> 00:39:26.239
that put the other factors
in play, obviously exclude,

00:39:26.239 --> 00:39:31.239
exceeding our current
reliability planning criteria.

00:39:31.330 --> 00:39:33.140
And this is also why extraordinary

00:39:33.140 --> 00:39:34.660
efforts were needed to avoid more

00:39:34.660 --> 00:39:36.333
outages the following week.

00:39:39.330 --> 00:39:40.280
Next slide, please.

00:39:45.610 --> 00:39:50.610
Second, the report finds

00:39:50.740 --> 00:39:53.220
that our planning targets
have not kept pace

00:39:53.220 --> 00:39:55.470
to procure sufficient
resources to meet demand

00:39:55.470 --> 00:39:57.700
in the early evening hours
on a hot summer days

00:39:57.700 --> 00:39:59.440
when air conditioner use remains high

00:39:59.440 --> 00:40:02.290
but solar generation both
behind and in front of the meter

00:40:02.290 --> 00:40:04.300
is tapering off bath.

00:40:04.300 --> 00:40:08.130
This period is referred to
as the net demand peak.

00:40:08.130 --> 00:40:10.937
And this slide illustrates
this phenomenon.

00:40:10.937 --> 00:40:15.040
The blue curve in the slide
represents the total demand

00:40:15.040 --> 00:40:19.330
across August 14th and
15th and the red curve below

00:40:19.330 --> 00:40:22.260
it represents net demand,
which subtracts solar

00:40:22.260 --> 00:40:25.113
and wind generation from
the total demand curve.

00:40:26.210 --> 00:40:29.430
The gray vertical slots
indicate the time periods

00:40:29.430 --> 00:40:31.430
in which the rotating outages were calm.

00:40:32.276 --> 00:40:34.950
And as you can see, both outages
occurred contemporaneously

00:40:34.950 --> 00:40:38.353
with the peak of that bread
net demand curve on each day.

00:40:39.392 --> 00:40:43.310
We've certainly been aware of
these net demand peak concerns

00:40:44.194 --> 00:40:45.103
in our planning processes.

00:40:46.158 --> 00:40:48.200
For example, we have
reduced by approximately 80%,

00:40:48.200 --> 00:40:50.350
the megawatt values of energy

00:40:50.350 --> 00:40:52.020
from intermittent renewable generation

00:40:52.020 --> 00:40:54.250
that can be, that can count

00:40:54.250 --> 00:40:56.803
towards our resource
adequacy program requirements.

00:40:57.760 --> 00:40:59.630
But despite these efforts,

00:40:59.630 --> 00:41:02.210
we've not ensured that
enough resources are available

00:41:02.210 --> 00:41:04.130
during this net demand peak period

00:41:04.130 --> 00:41:06.050
during extreme heat events

00:41:06.050 --> 00:41:08.050
which are unfortunately
likely to increase

00:41:08.050 --> 00:41:09.073
with climate change.

00:41:11.800 --> 00:41:12.750
Next slide, please.

00:41:17.230 --> 00:41:19.140
The third category of root causes is

00:41:19.140 --> 00:41:22.390
that some day ahead market
practices mask the full level

00:41:22.390 --> 00:41:26.170
of demand leading to
higher amounts of exports.

00:41:26.170 --> 00:41:29.290
This slide depicts the
primary market issue

00:41:29.290 --> 00:41:31.010
which is that load serving entities

00:41:31.010 --> 00:41:33.118
or their scheduling
coordinators did not did

00:41:33.118 --> 00:41:36.850
or schedule enough load
in the day ahead market.

00:41:36.850 --> 00:41:38.610
The yellow step curve

00:41:38.610 --> 00:41:41.830
in this figure represents
the cases day ahead

00:41:41.830 --> 00:41:43.293
forecast for these days.

00:41:44.230 --> 00:41:47.538
And the orange line
represents actual day of demand.

00:41:47.538 --> 00:41:50.730
And keep in mind that
emergency demand response

00:41:50.730 --> 00:41:52.490
was triggered on both
of these afternoons.

00:41:52.490 --> 00:41:54.020
So the red curve would have likely been

00:41:54.020 --> 00:41:56.220
at least a thousand megawatts higher

00:41:56.220 --> 00:41:58.853
but for the impact of
emergency demand response.

00:42:01.380 --> 00:42:04.120
Now the greatest step
curve underneath these red

00:42:04.120 --> 00:42:06.381
and orange lines represents the amount

00:42:06.381 --> 00:42:08.390
of bid load in the day ahead market.

00:42:08.390 --> 00:42:11.270
As you can see, the
scheduled and bid load

00:42:11.270 --> 00:42:14.180
on these days was well
below the CAISO did forecast

00:42:14.180 --> 00:42:16.670
and even further below the actual demand

00:42:16.670 --> 00:42:19.333
that would have occurred
absent emergency DR.

00:42:20.597 --> 00:42:23.250
The amount of good load was also well

00:42:23.250 --> 00:42:25.440
below the available
resources that were bid

00:42:25.440 --> 00:42:26.850
into the day head market

00:42:26.850 --> 00:42:29.280
which are not depicted in this figure

00:42:29.280 --> 00:42:30.830
which means that these additional

00:42:30.830 --> 00:42:32.770
bid resources became available

00:42:32.770 --> 00:42:35.310
to be exported to
support load that was bid

00:42:35.310 --> 00:42:36.833
in from other balancing areas.

00:42:38.665 --> 00:42:42.350
Now under scheduling
load in the day ahead market

00:42:43.440 --> 00:42:44.273
it's not a bad thing
under normal conditions.

00:42:44.273 --> 00:42:46.250
It's a reasonable hedge

00:42:46.250 --> 00:42:48.610
against potential higher
prices that may be offered

00:42:48.610 --> 00:42:50.319
in the day ahead market

00:42:50.319 --> 00:42:51.735
versus the realtime market,
especially given the lack

00:42:51.735 --> 00:42:53.476
of precision each individual
post serving entity has

00:42:53.476 --> 00:42:58.030
in knowing what its actual load will be.

00:42:58.030 --> 00:43:02.150
They are, but this is clearly a
problem when supply is tight

00:43:02.150 --> 00:43:04.413
and the demand forecast is very high.

00:43:07.820 --> 00:43:09.310
Now two market mechanisms

00:43:09.310 --> 00:43:10.900
that might've counteracted the impact

00:43:10.900 --> 00:43:14.496
of this under scheduled blow
did not perform as intended.

00:43:14.496 --> 00:43:17.940
The first was convergence bidding

00:43:17.940 --> 00:43:20.000
within the day ahead market.

00:43:20.000 --> 00:43:22.300
convergence bidding
is a financial transaction

00:43:22.300 --> 00:43:24.290
that allows traders to submit bids

00:43:24.290 --> 00:43:27.070
for virtual supply or virtual load.

00:43:27.070 --> 00:43:29.670
And it can help converge
or moderate the prices

00:43:29.670 --> 00:43:31.973
between the day ahead
and realtime market.

00:43:33.280 --> 00:43:35.380
On days in which
demand is being under bid.

00:43:35.380 --> 00:43:37.454
If it was on the 14th and 15th,

00:43:37.454 --> 00:43:42.340
we might expect that
convergence busy bidding to result

00:43:42.340 --> 00:43:46.523
in net additional virtual demand bid,

00:43:47.398 --> 00:43:52.398
which would then lead
to potentially being met by

00:43:53.998 --> 00:43:56.473
actual real resources.

00:43:56.473 --> 00:44:01.473
And, but instead a virtual
supply bid exceeded load

00:44:02.474 --> 00:44:04.020
on these days which maPs and exacerbated

00:44:04.020 --> 00:44:07.000
the real supply Def
deficit in the day at market

00:44:07.000 --> 00:44:09.493
that was caused by the
under scheduling and load.

00:44:12.180 --> 00:44:14.270
A second market
mechanism that did not act

00:44:14.270 --> 00:44:16.853
as intended was in the residents'

00:44:16.853 --> 00:44:18.060
residual unit commitment market

00:44:18.060 --> 00:44:20.010
which is the second step
in the day ahead market

00:44:20.010 --> 00:44:22.970
that is intended to ensure
that the CAISO can produce

00:44:22.970 --> 00:44:25.733
a reliable operating plan
for the next operating day.

00:44:26.620 --> 00:44:28.610
The rocket itself is also a two

00:44:28.610 --> 00:44:30.720
step process that
involves a scheduling run

00:44:30.720 --> 00:44:34.380
and a pricing run and
a price related feature

00:44:34.380 --> 00:44:36.660
of the CAISO market that is
also used in the ROC resulted

00:44:36.660 --> 00:44:41.230
in the scheduling run
clearing in the rec market

00:44:41.230 --> 00:44:44.270
without identifying resource shortfall.

00:44:44.270 --> 00:44:46.330
The CAISO has since
determined this feature

00:44:46.330 --> 00:44:48.323
is not necessary for the rec market.

00:44:51.896 --> 00:44:54.163
Okay next slide, please.

00:44:58.170 --> 00:45:00.570
Based on these preliminary root causes,

00:45:00.570 --> 00:45:02.520
the report recommends
a number of actions

00:45:02.520 --> 00:45:04.790
that should be considered
in both the near term

00:45:04.790 --> 00:45:07.840
and in the mid to longer
term to improve the liability

00:45:07.840 --> 00:45:08.673
in the future.

00:45:11.740 --> 00:45:12.600
In the near term,

00:45:12.600 --> 00:45:15.236
we need to first off ensure that the

00:45:15.236 --> 00:45:16.886
2,400 megawatts of resources that

00:45:17.816 --> 00:45:19.020
the Commission has already
directed to be procured

00:45:19.020 --> 00:45:20.899
and are scheduled to be online

00:45:20.899 --> 00:45:23.163
for next summer, actually
come online by next summer.

00:45:24.040 --> 00:45:26.340
Second, the report recommends

00:45:26.340 --> 00:45:29.160
that the Commission commenced
an expedited regulatory

00:45:29.160 --> 00:45:31.450
and procurement process to develop

00:45:31.450 --> 00:45:35.960
additional resources that
could be on line by 2021.

00:45:35.960 --> 00:45:37.830
And that a similar effort be coordinated

00:45:37.830 --> 00:45:41.040
with non CQC jurisdictional
load serving entities

00:45:41.040 --> 00:45:43.140
within the CAISO
balancing authority area.

00:45:45.680 --> 00:45:49.664
Third, and this recommend
station extends into,

00:45:49.664 --> 00:45:53.430
you know, begins now, but it
extends forward into the mid

00:45:54.876 --> 00:45:55.880
and longer term is a
recommendation to update resource

00:45:55.880 --> 00:45:59.276
and reliability planning
targets to better account

00:45:59.276 --> 00:46:01.200
for extreme weather events

00:46:01.200 --> 00:46:04.533
and to improve reliability
planning for the net demand peak.

00:46:06.470 --> 00:46:07.867
The final set of near
term recommendations

00:46:07.867 --> 00:46:11.352
in the report address
enhancements to the type

00:46:11.352 --> 00:46:14.040
of market practices
identified in the previous slide

00:46:14.040 --> 00:46:17.130
and for also for CAISO to
make changes to the rule

00:46:17.130 --> 00:46:19.217
to ensure that resources
that are paid to be available

00:46:19.217 --> 00:46:22.890
during peak summer months
are not approved to go offline

00:46:22.890 --> 00:46:25.393
unless their owners
provide replacement capacity

00:46:25.393 --> 00:46:26.870
which would have resulted

00:46:26.870 --> 00:46:29.470
in 400 megawatts of
additional capacity this August.

00:46:32.130 --> 00:46:33.080
Next slide, please.

00:46:37.730 --> 00:46:41.132
Moving to a mid and longer
term recommendations.

00:46:41.132 --> 00:46:43.920
Starting on the left hand column,

00:46:43.920 --> 00:46:46.140
as mentioned in the
previous slide report

00:46:46.140 --> 00:46:49.280
recommends the process
of updating resource

00:46:49.280 --> 00:46:51.280
and reliability planning
targets to better account

00:46:51.280 --> 00:46:54.060
for climate change and
then net demand peak.

00:46:54.060 --> 00:46:56.640
And this process would begin soon

00:46:56.640 --> 00:46:59.053
but continue into the
mid and longer term.

00:47:00.550 --> 00:47:03.353
The other items in this
column implicate IRP,

00:47:03.353 --> 00:47:05.100
and relate to longer term transmission

00:47:05.100 --> 00:47:07.400
and resource development planning.

00:47:07.400 --> 00:47:10.556
We would engage in
with the CEC, the CAISO

00:47:10.556 --> 00:47:14.173
and other neighboring
States to meet SB 100 goals.

00:47:18.354 --> 00:47:21.200
Items on the right side of the slide

00:47:22.930 --> 00:47:23.763
will be led by other agencies.

00:47:23.763 --> 00:47:25.330
The CAISO would continue
to make improvements

00:47:25.330 --> 00:47:27.820
to its market processes
based on lessons learned

00:47:27.820 --> 00:47:30.870
from the August and September
and September heat event.

00:47:30.870 --> 00:47:34.670
And beginning in 2020
into 2021 integrated

00:47:34.670 --> 00:47:37.750
energy policy report
the CDC plans to develop

00:47:37.750 --> 00:47:40.130
a statewide summer assessment

00:47:40.130 --> 00:47:42.860
in coordination with the CQC, the CAISO

00:47:42.860 --> 00:47:44.910
and neighboring States to provide

00:47:44.910 --> 00:47:46.080
additional information to

00:47:46.080 --> 00:47:48.130
support California's
reliability efforts.

00:47:53.390 --> 00:47:54.340
Next slide, please.

00:47:59.100 --> 00:48:01.240
Finally, this is a preliminary analysis

00:48:01.240 --> 00:48:03.730
and this slide identifies
remaining steps

00:48:03.730 --> 00:48:05.760
towards procuring producing

00:48:05.760 --> 00:48:09.150
rather a final version of
this report. (clears throat)

00:48:09.150 --> 00:48:11.130
First, we intend to
review the performance

00:48:11.130 --> 00:48:13.990
of resources during the heat SCORM.

00:48:13.990 --> 00:48:16.040
And in particular,
we're interested in how

00:48:16.040 --> 00:48:18.490
individual resources under RA contact,

00:48:18.490 --> 00:48:20.660
contract prefer formed,

00:48:20.660 --> 00:48:23.480
have demand response
perform in particular

00:48:23.480 --> 00:48:26.700
in how resources that don't
appear in the cases supply plans

00:48:26.700 --> 00:48:29.880
in her instead credited
for the load, serving entities

00:48:29.880 --> 00:48:31.603
already obligations, perform.

00:48:33.430 --> 00:48:36.690
Understanding how resources
under RA contract reform

00:48:36.690 --> 00:48:39.110
is an important one
for the obvious reason

00:48:39.110 --> 00:48:41.710
that if resource we're
bidding less energy

00:48:41.710 --> 00:48:44.290
into the day ahead markets
than their RA commitment

00:48:44.290 --> 00:48:46.674
we need to understand
why that is happening

00:48:46.674 --> 00:48:48.620
and address it.

00:48:48.620 --> 00:48:49.990
But it is also important

00:48:49.990 --> 00:48:53.040
because some of these resources
may be bidding more energy

00:48:53.040 --> 00:48:54.120
into the day ahead markets

00:48:54.120 --> 00:48:56.370
than their monthly RA commitments.

00:48:56.370 --> 00:48:58.032
And the current day ahead

00:48:58.032 --> 00:48:59.060
market rules treat bids from resources

00:48:59.060 --> 00:49:01.649
in excess of their RA commitments
to be non RA energy bids

00:49:01.649 --> 00:49:06.649
and different market rules
apply to non RA and RA energy.

00:49:08.603 --> 00:49:11.500
Second, we intend to analyze
how different load serving

00:49:11.500 --> 00:49:14.907
energies scheduling
coordinators scheduled load

00:49:14.907 --> 00:49:16.220
and the day ahead market

00:49:16.220 --> 00:49:20.253
as compared with those LLCs
forecast, that peak demand.

00:49:24.890 --> 00:49:28.033
Third, we intend to look
at how communications

00:49:32.420 --> 00:49:35.220
to utility distribution
companies were implemented

00:49:35.220 --> 00:49:36.820
with the goal of improving those

00:49:37.769 --> 00:49:39.260
communications to ensure
appropriate responses

00:49:39.260 --> 00:49:43.563
during future critical
reliability events for improved.

00:49:46.510 --> 00:49:47.493
Next slide.

00:49:52.540 --> 00:49:53.795
That concludes my presentation

00:49:53.795 --> 00:49:56.180
on the preliminary root cause analysis.

00:49:56.180 --> 00:49:58.080
And I'd be happy to take any questions

00:49:58.959 --> 00:50:01.463
<v ->Pete, thank you so much.</v>

00:50:04.114 --> 00:50:05.350
And I personally on behalf
of my fellow Commissioners,

00:50:05.350 --> 00:50:08.780
want to thank you
for all of the hard work

00:50:08.780 --> 00:50:10.150
that you and your team has put

00:50:10.150 --> 00:50:15.150
into this root cause analysis
since literally the 14th

00:50:15.757 --> 00:50:19.853
and 15th of August, late
nights, many weekends,

00:50:19.853 --> 00:50:23.350
you work through everything

00:50:23.350 --> 00:50:25.600
and I do so appreciate it Pete.

00:50:25.600 --> 00:50:27.100
And thank you.

00:50:27.100 --> 00:50:29.863
Commissioners, do you
have any questions of Pete.

00:50:31.510 --> 00:50:32.610
<v ->President Batjer?</v>

00:50:32.610 --> 00:50:35.360
I actually just wanted
to add a quick text also

00:50:35.360 --> 00:50:39.730
to ALJ Julie Fitch, who did
some sort of last minute review

00:50:39.730 --> 00:50:42.713
and editing of the document as well.

00:50:42.713 --> 00:50:44.930
So we really appreciated that

00:50:44.930 --> 00:50:49.350
and I cannot echo President Batjer's

00:50:49.350 --> 00:50:52.470
thanks to Pete and add Randolph enough.

00:50:52.470 --> 00:50:54.520
I mean they really
worked around the clock

00:50:54.520 --> 00:50:58.200
with the other agencies
putting together this report.

00:50:58.200 --> 00:50:59.350
So I will add that.

00:50:59.350 --> 00:51:00.590
Thanks as well.

00:51:00.590 --> 00:51:03.109
<v ->Thank you very much for
your comment about Julie Fitch.</v>

00:51:03.109 --> 00:51:08.109
Julie jumped in with her
immense skills and experience

00:51:08.673 --> 00:51:12.050
and helped us out tremendously.

00:51:12.050 --> 00:51:15.560
And thank you for mentioning
that Commissioner Randolph.

00:51:15.560 --> 00:51:18.770
And Randolph is thankfully

00:51:18.770 --> 00:51:21.527
taking a little bit of time off
in a vacation after working

00:51:21.527 --> 00:51:26.193
as you said tirelessly for the
last gosh a month and a half.

00:51:27.840 --> 00:51:29.190
I think there were some other hands.

00:51:29.190 --> 00:51:31.330
Yes, Mr. Sherman

00:51:31.330 --> 00:51:32.870
and then we'll go to a
Commissioner Reshova.

00:51:34.929 --> 00:51:37.500
<v ->Yes, thank you
President Batjer and Pete,</v>

00:51:37.500 --> 00:51:38.840
and to the whole team

00:51:38.840 --> 00:51:42.929
for really essential deep dive
on tremendous work essential

00:51:42.929 --> 00:51:47.929
because we need to
plan, prepare, build so forth,

00:51:49.737 --> 00:51:54.737
to prevent this from
happening in the future.

00:51:57.592 --> 00:52:01.907
But my question is, is
the CAISO, is a team

00:52:01.907 --> 00:52:06.907
also reaching out to the
other balancing authority,

00:52:07.410 --> 00:52:12.410
such as BANT, B-A-N-T,
and others that are separate,

00:52:13.560 --> 00:52:15.540
but also are connected

00:52:15.540 --> 00:52:18.370
through these like, you
know, executives EIN.

00:52:18.370 --> 00:52:19.970
So are they reaching out to the other

00:52:19.970 --> 00:52:24.290
balancing authorities to also see

00:52:24.290 --> 00:52:27.890
if there are any other
insights to be garnered

00:52:27.890 --> 00:52:32.890
from these others that did
not experience the blackout

00:52:37.010 --> 00:52:40.570
<v ->I expect they will, don't
want to speak for them.</v>

00:52:40.570 --> 00:52:44.170
But I think also as part of the CDC plan

00:52:44.170 --> 00:52:47.010
summer assessments,
they do intend to engage

00:52:47.010 --> 00:52:50.593
with other balancing neighboring
balancing authority areas.

00:52:53.610 --> 00:52:54.520
<v ->Okay. Thank you.</v>

00:52:54.520 --> 00:52:57.800
I think it'd be important to
see what their perspectives are

00:52:57.800 --> 00:52:59.620
on what happened.

00:52:59.620 --> 00:53:01.270
Thank you again.

00:53:01.270 --> 00:53:05.350
<v ->The whole thing they've
mentioned that, so I'm at</v>

00:53:05.350 --> 00:53:07.320
with PETA we've we can't speak for them,

00:53:07.320 --> 00:53:12.320
but I'm uncertain it's already
been mentioned by the CDC.

00:53:14.530 --> 00:53:15.580
Commissioner Reshova.

00:53:16.970 --> 00:53:19.167
<v ->I want to also thank
you President Batjer</v>

00:53:19.167 --> 00:53:21.910
and Commissioner Randolph
for being the point people

00:53:21.910 --> 00:53:24.040
around the clock and helping us steer

00:53:24.991 --> 00:53:27.511
through these very difficult times

00:53:27.511 --> 00:53:28.951
with such so much stress on our grid,

00:53:28.951 --> 00:53:32.180
Pete, that, I have a question

00:53:32.180 --> 00:53:34.580
for you that you may or may
not have answered already

00:53:34.580 --> 00:53:37.653
but I want to just draw it out.

00:53:37.653 --> 00:53:41.720
You said that the,
this event was one in,

00:53:41.720 --> 00:53:45.340
a one in 35 weather events

00:53:45.340 --> 00:53:47.850
and we need to adjust
our planning horizons.

00:53:47.850 --> 00:53:48.683
And you also talked

00:53:48.683 --> 00:53:51.520
about the resources that
are already committed

00:53:51.520 --> 00:53:54.160
for 2021 and the need
to accelerate those

00:53:54.160 --> 00:53:57.912
and look at other resources
that can be brought

00:53:57.912 --> 00:53:59.572
online very quickly.

00:53:59.572 --> 00:54:02.630
When we authorize procurement

00:54:02.630 --> 00:54:05.060
of those 2020 resources,
we were still operating

00:54:05.060 --> 00:54:07.420
under the old planning assumptions

00:54:07.420 --> 00:54:11.603
that you identified at
the start do we, so my,

00:54:13.313 --> 00:54:15.530
I guess my question is if
those resources come online

00:54:15.530 --> 00:54:18.970
will they be enough or do
they need to be reconsidered

00:54:18.970 --> 00:54:21.875
in light of the one in 35
horizon or the horizon

00:54:21.875 --> 00:54:26.530
of extreme heat storms
and climate events

00:54:26.530 --> 00:54:28.610
that were is an out now the new reality

00:54:28.610 --> 00:54:30.573
that is August made clear.

00:54:32.240 --> 00:54:35.820
<v ->So yeah, the second
near term recommendation</v>

00:54:35.820 --> 00:54:40.820
was to open expedited
proceedings to look at

00:54:42.090 --> 00:54:43.986
you know, planning and procurement

00:54:43.986 --> 00:54:47.350
of additional resources for this summer.

00:54:47.350 --> 00:54:52.350
So that would presumably entail looking

00:54:52.960 --> 00:54:54.300
at a different standard

00:54:54.300 --> 00:54:57.233
and also looking at what
resources could realistically

00:54:57.233 --> 00:55:02.233
be brought online and support
a similar event that's coming.

00:55:02.900 --> 00:55:05.368
If one were to occur this coming summer.

00:55:05.368 --> 00:55:07.667
<v ->Thank you.</v>

00:55:12.274 --> 00:55:13.610
<v ->President Batjer, thank you.</v>

00:55:13.610 --> 00:55:15.610
<v ->Yes, Commissioner
Rechtschaffen?</v>

00:55:16.520 --> 00:55:18.730
<v ->Well, thanks again
to everyone and Pete,</v>

00:55:18.730 --> 00:55:20.730
a tremendous amount of work.

00:55:20.730 --> 00:55:23.870
And I know you've probably
had to answer the same question

00:55:23.870 --> 00:55:26.820
about a hundred times from all of us

00:55:26.820 --> 00:55:31.650
and everyone else said you
helped understand this situation.

00:55:31.650 --> 00:55:34.275
And to everyone really
well put this together.

00:55:34.275 --> 00:55:38.060
I was most surprised

00:55:38.060 --> 00:55:41.120
and also somewhat
releaved in a weird way.

00:55:41.120 --> 00:55:43.792
Relieved in the sense that we can really

00:55:43.792 --> 00:55:47.185
provide some mitigation here quickly

00:55:47.185 --> 00:55:51.420
with this data that you
described on the day ahead.

00:55:51.420 --> 00:55:54.409
And what's actually under contract

00:55:54.409 --> 00:55:58.223
versus what's it ahead in the day ahead.

00:55:59.091 --> 00:56:02.767
So I mean, the amount of megawatts here

00:56:02.767 --> 00:56:07.767
3,300 3,400 is such
an opportunity to see it

00:56:09.090 --> 00:56:10.840
in the positive way.

00:56:10.840 --> 00:56:13.260
And I just wonder if
we're gonna be looking at,

00:56:13.260 --> 00:56:15.055
or if you may already know

00:56:15.055 --> 00:56:20.055
of these resources that we have

00:56:20.090 --> 00:56:24.291
under contract under to
meet our RA for the LSE.

00:56:24.291 --> 00:56:28.720
Are we looking at some
of the contract dynamics

00:56:30.014 --> 00:56:33.290
and things like, you know
totally in agreement are the LOC?

00:56:34.330 --> 00:56:35.530
I assume the majority

00:56:35.530 --> 00:56:38.896
of the cause of this is that
they're not being dispatched

00:56:38.896 --> 00:56:39.993
by the LSPs anymore.

00:56:39.993 --> 00:56:41.890
And just kind of just missing the link

00:56:41.890 --> 00:56:46.410
of how we're guarding against this.

00:56:46.410 --> 00:56:49.190
And I wonder if in our
RA maybe this a question

00:56:49.190 --> 00:56:50.389
for you Commissioner

00:56:50.389 --> 00:56:53.610
but assuming the RA
proceeding, we're gonna be looking

00:56:53.610 --> 00:56:56.392
at this and the
opportunity for us to ensure

00:56:56.392 --> 00:57:01.392
that everything as simple as,
you know, being more cautious

00:57:02.900 --> 00:57:07.170
and requiring some of
this bidding to happen

00:57:07.170 --> 00:57:10.790
on the day ahead,
anyway, that's kind of a big

00:57:10.790 --> 00:57:15.190
it seems like a very, a huge opportunity

00:57:15.190 --> 00:57:18.533
for us to mitigate the
problem for next year.

00:57:19.476 --> 00:57:23.863
<v ->Well, I guess I would say
a couple things about that.</v>

00:57:24.715 --> 00:57:26.450
One is I mentioned in the next steps is

00:57:26.450 --> 00:57:28.750
that we do intend to get a better sense

00:57:28.750 --> 00:57:31.540
of how each of the
resources under our contract

00:57:31.540 --> 00:57:34.595
performed in the realtime market.

00:57:34.595 --> 00:57:39.595
I'd also say though
that that data, you know

00:57:41.450 --> 00:57:46.068
a fair amount of that was
resolved in the real time market.

00:57:46.068 --> 00:57:50.110
And I think that if you
look at the net imports

00:57:50.110 --> 00:57:54.310
on those days, they
are terribly different

00:57:54.310 --> 00:57:57.970
than the amount of shown
RA importance for those days.

00:57:57.970 --> 00:58:01.669
So I don't, I think they're,
you know, operationally there

00:58:01.669 --> 00:58:02.720
these are going to
provide some improvements

00:58:02.720 --> 00:58:06.710
but I don't think that we,
this is going to increase

00:58:06.710 --> 00:58:11.710
the amount of, you know
to the tune of 3080 Watts

00:58:14.411 --> 00:58:19.150
the Delta there, between what
we did get on those real time

00:58:19.150 --> 00:58:21.963
in real time versus what
was shown from RA.

00:58:24.709 --> 00:58:29.709
<v ->Yeah, I'll just, and I'll
just add to that is sort of</v>

00:58:32.010 --> 00:58:37.010
that dynamic really exacerbated
sort of a last minute kind

00:58:37.875 --> 00:58:42.583
of effect of the 14th and
the 15th into the extent

00:58:44.654 --> 00:58:49.654
that, you know, we sort
of realize that, you know

00:58:52.860 --> 00:58:57.690
shedding load was going
to be necessary, you know

00:58:57.690 --> 00:59:01.716
much later than we should
have as a result of some

00:59:01.716 --> 00:59:04.650
of this sort of lack
of clarity as a result

00:59:04.650 --> 00:59:05.920
of the market conditions.

00:59:05.920 --> 00:59:09.953
But in the, in suing days, we still

00:59:09.953 --> 00:59:14.953
experienced significant shortfalls.

00:59:15.050 --> 00:59:17.470
You know, even though at that point kind

00:59:17.470 --> 00:59:19.760
of the market conditions,
weren't the issue anymore.

00:59:19.760 --> 00:59:21.675
So I think it's important
kind of recognize

00:59:21.675 --> 00:59:26.532
that those factors interplay together

00:59:26.532 --> 00:59:30.080
but addressing the market
issues doesn't necessarily

00:59:30.080 --> 00:59:31.970
create new resources.

00:59:31.970 --> 00:59:35.810
Right, you know, so we're
gonna need to be able to access

00:59:35.810 --> 00:59:38.493
more megawatts just regardless.

00:59:45.310 --> 00:59:48.300
<v ->Are there any other
comments or questions</v>

00:59:48.300 --> 00:59:49.450
from the Commissioners?

00:59:51.080 --> 00:59:55.770
Okay. Seeing none, Pete, again,
my many, many things to you

00:59:55.770 --> 00:59:58.870
and the energy division team.

00:59:58.870 --> 00:59:59.800
Thank you so much.

00:59:59.800 --> 01:00:01.950
And thanks for this
presentation. Well done

01:00:02.790 --> 01:00:03.700
<v ->Thank you very much.</v>

01:00:03.700 --> 01:00:06.860
And yeah, it was a really
great team of hardworking folks

01:00:06.860 --> 01:00:07.900
in energy division

01:00:07.900 --> 01:00:12.480
and in the other agencies
that pulled this off, take care.

01:00:12.480 --> 01:00:13.680
<v ->Yes, it really was.</v>

01:00:13.680 --> 01:00:15.370
Thank you so much, Pete.

01:00:15.370 --> 01:00:17.663
Okay. We will move on into the agenda.

01:00:19.351 --> 01:00:24.351
First we will, I will take up
the changes to the agenda.

01:00:24.930 --> 01:00:28.270
And these are the
changes to today's agenda,

01:00:28.270 --> 01:00:33.270
item five we'll, we will take
up in the regular agenda.

01:00:36.900 --> 01:00:41.900
Item 11 will be held
to the November 5th,

01:00:42.770 --> 01:00:45.280
2020 Commission meeting.

01:00:45.280 --> 01:00:50.280
Item 19 we will take up
today in the consent agenda.

01:00:54.921 --> 01:00:59.921
So we will now take
up the consent items.

01:01:00.510 --> 01:01:02.003
Is there a motion?

01:01:04.780 --> 01:01:06.250
<v ->Been moved.</v>

01:01:06.250 --> 01:01:07.083
<v ->It's been moved</v>

01:01:07.083 --> 01:01:10.460
and I'm gonna assume one
of those so will be a second

01:01:10.460 --> 01:01:12.193
and moved and seconded.

01:01:13.540 --> 01:01:16.130
I'll, we'll be agenda
clerk please call the role

01:01:16.130 --> 01:01:18.463
for the consent agenda.

01:01:19.892 --> 01:01:20.911
<v ->Commissioner Shiloma.</v>

01:01:20.911 --> 01:01:21.744
<v ->Aye.</v>

01:01:23.010 --> 01:01:25.080
<v ->Commissioner Rechtschaffen.</v>

01:01:25.080 --> 01:01:26.520
<v ->Aye.</v>

01:01:26.520 --> 01:01:27.986
<v ->Commissioner Randolph.</v>

01:01:27.986 --> 01:01:28.819
<v ->Yes.</v>

01:01:30.014 --> 01:01:31.409
<v ->Commissioner Rechtschaffen.</v>

01:01:31.409 --> 01:01:33.075
<v ->Yes.</v>

01:01:33.075 --> 01:01:34.654
<v ->President Batjer.</v>

01:01:34.654 --> 01:01:37.140
<v ->Yes. Thank you all.</v>

01:01:37.140 --> 01:01:41.040
The consent agenda
has passed unanimously.

01:01:41.040 --> 01:01:43.840
Commisioner Rechtschaffen
would like to make remarks.

01:01:43.840 --> 01:01:46.620
I believe on item four, the Pacific gas

01:01:46.620 --> 01:01:49.793
and electric company for a
mobile application pilot program,

01:01:51.730 --> 01:01:53.440
<v ->Thank you President Batjer.</v>

01:01:53.440 --> 01:01:56.850
In this decision, we
launched a pilot program

01:01:56.850 --> 01:02:00.640
for PG&amp;E to provide
its customers who live

01:02:00.640 --> 01:02:04.010
in high fire threat areas.

01:02:04.010 --> 01:02:07.520
The ability to identify safety risks

01:02:07.520 --> 01:02:11.711
via a new smart phone mobile app.

01:02:11.711 --> 01:02:15.270
And if you recall we
directed PG&amp;E to create

01:02:15.270 --> 01:02:17.770
this new safety tool

01:02:17.770 --> 01:02:22.570
as one of many remedial
actions we ordered

01:02:22.570 --> 01:02:26.810
in the enforcement actions,
we took against PG&amp;E

01:02:26.810 --> 01:02:31.810
for its role in the catastrophic
wildfires of 2017 and 2018.

01:02:32.142 --> 01:02:37.142
And the basic concept
hopefully is simple and important.

01:02:39.913 --> 01:02:41.812
It's to crowd source
potential safety risks

01:02:41.812 --> 01:02:46.812
by allowing individuals to
send photos with GIS information

01:02:47.553 --> 01:02:52.553
of PG&amp;E utility poles
and other infrastructure

01:02:53.030 --> 01:02:57.870
to PG&amp;E, and to have them
analyze what they receive.

01:02:57.870 --> 01:03:01.130
These reports will be publicly available

01:03:01.130 --> 01:03:04.893
including any steps PG&amp;E
takes in response consistent

01:03:04.893 --> 01:03:09.143
with our confidentiality rules.

01:03:09.990 --> 01:03:13.136
The app will be
available within 10 months

01:03:13.136 --> 01:03:18.136
to customers and tier two
and tier three high fire 30 areas.

01:03:18.660 --> 01:03:20.220
It will also be available

01:03:20.220 --> 01:03:24.550
to Cal fire entities that PG&amp;E operates

01:03:24.550 --> 01:03:27.520
under joint pole agreements

01:03:27.520 --> 01:03:31.560
and also vegetation
management contractors

01:03:31.560 --> 01:03:35.028
with the very important
proviso that PG&amp;E

01:03:35.028 --> 01:03:37.569
in its training materials

01:03:37.569 --> 01:03:38.893
and otherwise we'll make clear

01:03:38.893 --> 01:03:40.930
that the use of the
app is discretionary.

01:03:40.930 --> 01:03:43.900
It's not to detract from
the primary activities

01:03:43.900 --> 01:03:46.091
that the vegetation
management contractors

01:03:46.091 --> 01:03:48.830
and it must be used consistent

01:03:48.830 --> 01:03:53.020
with safety protocols and common sense.

01:03:53.020 --> 01:03:55.054
That's very important limitation.

01:03:55.054 --> 01:03:57.988
This is funded entirely
by PG&amp;E shareholders.

01:03:57.988 --> 01:04:00.710
The decision requires a third

01:04:00.710 --> 01:04:05.114
party evaluated to assess
how effective the app is

01:04:05.114 --> 01:04:10.080
and whether this app could
also have broader benefits such

01:04:10.080 --> 01:04:14.180
as improving customer
engagement by PG&amp;E.

01:04:14.180 --> 01:04:15.180
I think the way to think

01:04:15.180 --> 01:04:18.837
about this is we are
trying to leverage more

01:04:18.837 --> 01:04:22.600
and more advanced technology
to improve public safety

01:04:22.600 --> 01:04:25.730
especially in the wildfire sphere.

01:04:25.730 --> 01:04:28.154
And this hopefully will be an
important learning opportunity

01:04:28.154 --> 01:04:30.408
in that effort.

01:04:30.408 --> 01:04:34.363
I want to thank ALJ DeAngelis

01:04:35.729 --> 01:04:37.273
and Jeremy Bateson,
our safety policy division

01:04:37.273 --> 01:04:41.080
for their work, my advisors,
Alex Grenada, and Shawn Simon.

01:04:41.080 --> 01:04:44.220
And I also want to thank
the broadband Institute

01:04:44.220 --> 01:04:48.489
of California at Santa
Clara university led

01:04:48.489 --> 01:04:51.469
by former PUC Commissioner
Conference Savivall

01:04:51.469 --> 01:04:53.760
for her strong engagement
in this proceeding,

01:04:53.760 --> 01:04:57.197
as well as the public
advocate's office, thank you.

01:04:59.871 --> 01:05:01.530
<v ->Thank you, Commissioner
Rechtschaffen.</v>

01:05:01.530 --> 01:05:05.056
Commissioner Shiloma I
believe you would like to speak

01:05:05.056 --> 01:05:06.880
to item 19 which is the appointment

01:05:06.880 --> 01:05:09.718
of public members to the
low income oversight board.

01:05:09.718 --> 01:05:11.560
<v ->Yes. Thank you.</v>

01:05:11.560 --> 01:05:12.990
Thank you, President Batjer.

01:05:12.990 --> 01:05:15.220
I just wanted to thank
on the Commissioners

01:05:15.220 --> 01:05:19.958
for your vote to
reappoint Lord (mumbles)

01:05:19.958 --> 01:05:22.710
to the low income oversight
board Lopez who goes

01:05:22.710 --> 01:05:26.170
by LIMU works as a community organizer

01:05:26.170 --> 01:05:29.770
in Fresno County with the
Dolores Huerta foundation.

01:05:29.770 --> 01:05:34.360
And she was first
appointed the LLB in 2018.

01:05:34.360 --> 01:05:39.050
Her experience as a advocate for women,

01:05:39.050 --> 01:05:42.650
single parent families and
immigrants is invaluable.

01:05:42.650 --> 01:05:47.403
Her voice and her contributions
are essential on the LLB.

01:05:48.280 --> 01:05:51.693
And I look forward to
continuing to work with her

01:05:51.693 --> 01:05:55.123
coming years, thank you.

01:05:56.540 --> 01:05:58.240
<v ->Thank you,
Commissioner Shiroma.</v>

01:05:59.220 --> 01:06:04.033
Okay. We will now move on
to the regular agenda items.

01:06:04.889 --> 01:06:07.700
The first item number five,

01:06:07.700 --> 01:06:10.050
the self generation incentive program

01:06:10.050 --> 01:06:11.850
equity, resiliency, budget

01:06:11.850 --> 01:06:15.994
electric wealth pump
customer eligibility requirements.

01:06:15.994 --> 01:06:20.150
This item is for discussion
after the discussion

01:06:20.150 --> 01:06:23.370
the Commission may
vote to hold this item

01:06:23.370 --> 01:06:28.370
to the October 22nd,
2020 voting meeting.

01:06:28.940 --> 01:06:33.053
I'm opening item up for discussion.

01:06:34.630 --> 01:06:36.180
Yes. Commissioner Shrek Chavez.

01:06:38.420 --> 01:06:39.263
<v ->Thank you.</v>

01:06:41.152 --> 01:06:43.420
I'd like to get some
background about the decision

01:06:43.420 --> 01:06:46.080
and some of the comments we've heard,

01:06:46.080 --> 01:06:47.900
including from the half dozen

01:06:48.756 --> 01:06:50.356
or more speakers who came today.

01:06:51.805 --> 01:06:52.951
Thank you very much
for your participation,

01:06:52.951 --> 01:06:56.230
outlined different
options we had considered

01:06:56.230 --> 01:07:00.020
and at other Commissioners
may be interested in,

01:07:00.020 --> 01:07:01.353
but if you'll indulge me,

01:07:01.353 --> 01:07:04.580
I just want to spend a few
minutes giving background

01:07:05.557 --> 01:07:08.660
about the program and some
of the details about the funding

01:07:08.660 --> 01:07:10.880
which are a little bit detailed

01:07:12.310 --> 01:07:16.860
but the basic part of
this decision is it revises

01:07:16.860 --> 01:07:21.860
and clarifies eligibility requirements

01:07:22.202 --> 01:07:25.850
for the S chip program
for customers that rely

01:07:25.850 --> 01:07:30.460
on an electric pump well
for their water supplies.

01:07:30.460 --> 01:07:35.090
And this is part of the equity
resilience budget program.

01:07:35.090 --> 01:07:37.170
Now, just to remind folks,

01:07:37.170 --> 01:07:40.420
that program was established in January

01:07:40.420 --> 01:07:43.600
and its very clear focus was

01:07:43.600 --> 01:07:46.810
on helping the most vulnerable customers

01:07:46.810 --> 01:07:49.990
and communities in high fire, 30 areas

01:07:50.922 --> 01:07:55.000
and ones that had been
affected by multiple PSPS events.

01:07:55.000 --> 01:07:58.762
And in particular we targeted
medical baseline customers,

01:07:58.762 --> 01:08:01.440
low income customers,

01:08:01.440 --> 01:08:05.570
and critical care facilities in
disadvantaged communities.

01:08:05.570 --> 01:08:09.040
We know from many of our
proceedings and a lot of the work

01:08:09.040 --> 01:08:11.260
in this area, there are
literally tens of thousands

01:08:11.260 --> 01:08:13.530
of medically vulnerable customers

01:08:13.530 --> 01:08:16.010
in these high fire threat areas.

01:08:16.010 --> 01:08:20.450
Most importantly the
program provides very, very

01:08:20.450 --> 01:08:23.270
generous subsidies to these customers,

01:08:23.270 --> 01:08:26.780
essentially covering the full cost

01:08:26.780 --> 01:08:29.503
of batteries for
customers in these areas.

01:08:30.540 --> 01:08:35.540
We allocated $612 million to
the equity resilience budget.

01:08:37.364 --> 01:08:40.753
The last between now and 2024.

01:08:41.687 --> 01:08:44.770
There's been a great deal
of interest in the program.

01:08:44.770 --> 01:08:46.990
I'm very happy to report.

01:08:46.990 --> 01:08:50.086
And in fact the demand
is so great at PG&amp;E

01:08:50.086 --> 01:08:53.353
already has allocated
all of its funding,

01:08:54.260 --> 01:08:56.426
approximately $270 million.

01:08:56.426 --> 01:08:59.110
And it already has a waiting list

01:08:59.110 --> 01:09:04.103
of 674 projects totaling $42 million.

01:09:05.260 --> 01:09:07.980
The other, I have seen
very significant interest

01:09:07.980 --> 01:09:11.670
not as much Edison has
about already allocated

01:09:11.670 --> 01:09:14.330
about 50% of its program

01:09:14.330 --> 01:09:18.200
San Diego, gas and electric,
almost 60% of its program.

01:09:18.200 --> 01:09:21.840
It's a program so Cal
gas lasts only about

01:09:21.840 --> 01:09:24.964
70% of the program.

01:09:24.964 --> 01:09:28.100
And just as an aside, you may recall

01:09:28.100 --> 01:09:32.650
that when we adopted the
program, there were some who said

01:09:32.650 --> 01:09:35.700
we wouldn't have sufficient
demand for the program.

01:09:35.700 --> 01:09:37.925
It wasn't targeted the right people.

01:09:37.925 --> 01:09:41.210
That's, that hasn't
been the case at all.

01:09:41.210 --> 01:09:44.845
Now as one of the
elements of the program,

01:09:44.845 --> 01:09:49.250
we said, customers
who rely on electricity

01:09:49.250 --> 01:09:52.020
to operate their wealth
funds are eligible.

01:09:52.020 --> 01:09:53.600
We've been very surprised

01:09:53.600 --> 01:09:56.900
by how many applications
have come from this segment.

01:09:56.900 --> 01:09:59.250
And really the extent
to which it's eating

01:09:59.250 --> 01:10:02.602
into the budget for other customers.

01:10:02.602 --> 01:10:07.490
As of last, as of August,
well, applications were half

01:10:07.490 --> 01:10:11.750
of all equity resilience applications

01:10:11.750 --> 01:10:15.880
while medically vulnerable
customers were only about 30%.

01:10:15.880 --> 01:10:19.646
For PG&amp;E in particular,
remember there's 270 million,

01:10:19.646 --> 01:10:22.500
97 million of its budget
has already gone

01:10:22.500 --> 01:10:24.847
to well installations.

01:10:24.847 --> 01:10:29.847
There are now pending about
$75 million in additional well

01:10:30.890 --> 01:10:34.190
applications that don't
have a confirmed reservation.

01:10:34.190 --> 01:10:36.450
And of course, I'll come back to that,

01:10:36.450 --> 01:10:41.360
but of that 75 million
pending 60 million

01:10:41.360 --> 01:10:42.980
is filed with PG&amp;E.

01:10:44.270 --> 01:10:47.460
So that means that if we were to approve

01:10:47.460 --> 01:10:50.347
all pending well applications

01:10:50.347 --> 01:10:54.440
about 157 million of
PG&amp;E's needs total budget

01:10:54.440 --> 01:10:59.440
of $270 million, about
60% would go to residential

01:10:59.610 --> 01:11:04.610
well customers, quite people could have,

01:11:05.465 --> 01:11:06.544
why is that happening?

01:11:06.544 --> 01:11:08.890
We're not totally sure,

01:11:08.890 --> 01:11:12.326
but apparently it's easier
for developers to identify

01:11:12.326 --> 01:11:14.062
and target customers with wealth

01:11:14.062 --> 01:11:17.290
and medically vulnerable customers.

01:11:17.290 --> 01:11:20.840
Also utilities have not even started

01:11:20.840 --> 01:11:24.081
their outreach programs that
we approved, designed to get

01:11:24.081 --> 01:11:28.390
to attract medically
vulnerable customers.

01:11:28.390 --> 01:11:31.710
It's also possible that some
developers may not be aware

01:11:31.710 --> 01:11:36.140
of the program we have in
PG&amp;E's territory that pays half

01:11:36.140 --> 01:11:38.010
of the incentive monies upfront

01:11:38.010 --> 01:11:40.080
for lower income customers who could

01:11:40.080 --> 01:11:42.313
not otherwise afford the system.

01:11:44.080 --> 01:11:46.300
Now, with that background
over the summer

01:11:46.300 --> 01:11:48.200
we clarified in a letter that well

01:11:48.200 --> 01:11:51.562
customers are only
eligible for the program

01:11:51.562 --> 01:11:55.210
if they rely on a well at
their primary residence

01:11:55.210 --> 01:11:56.670
can't be a second home.

01:11:56.670 --> 01:11:59.360
We were seeing some
second home residence.

01:11:59.360 --> 01:12:03.900
This decision puts in
place an income limitation

01:12:03.900 --> 01:12:07.160
so that well customers
must be low income

01:12:07.160 --> 01:12:10.220
for the full again it's
very generous subsidy

01:12:10.220 --> 01:12:12.960
which is applying the
same limit that applies

01:12:12.960 --> 01:12:15.693
to most of our other customers.

01:12:16.530 --> 01:12:19.500
And now the part that's
been more controversial

01:12:19.500 --> 01:12:23.001
the decision provides
the rule will apply

01:12:23.001 --> 01:12:26.764
to all customers who don't
have confirmed reservations

01:12:26.764 --> 01:12:30.293
as of the date, the
Commission adopts the decision.

01:12:31.520 --> 01:12:35.323
Right now there are
about 2,184 applications

01:12:37.878 --> 01:12:41.310
for wells who do not have
confirmed reservation.

01:12:41.310 --> 01:12:43.870
So they that's the potential scope

01:12:43.870 --> 01:12:46.550
if the decision would
it be adopted today.

01:12:46.550 --> 01:12:49.177
Now it's important
to keep in mind again,

01:12:49.177 --> 01:12:53.740
what the decision says
there are income limitations.

01:12:53.740 --> 01:12:55.847
The customers can still qualify

01:12:55.847 --> 01:12:58.950
for the equity resiliency budget

01:12:58.950 --> 01:13:03.950
if they're low income, they
would get the full deep subsidy.

01:13:03.990 --> 01:13:05.520
And we provide additional time

01:13:05.520 --> 01:13:08.060
if necessary for them to do that.

01:13:08.060 --> 01:13:10.520
Customers can also still qualify

01:13:10.520 --> 01:13:13.140
for other residential SGF incentives.

01:13:13.140 --> 01:13:17.080
It's just not as generous as
the equity resilience budget

01:13:18.037 --> 01:13:23.037
but some customers honestly
will not qualify as low income.

01:13:23.347 --> 01:13:24.870
And we heard from some

01:13:24.870 --> 01:13:27.620
of the companies who have
been working with them today.

01:13:29.150 --> 01:13:30.800
Almost all the parties supported

01:13:30.800 --> 01:13:33.460
this new rule with one exception,

01:13:33.460 --> 01:13:38.460
but to storage, the sole
pals California, solar

01:13:38.960 --> 01:13:41.490
and storage association, and Sunrun

01:13:41.490 --> 01:13:44.210
in particular raise concerned
about its effective date.

01:13:44.210 --> 01:13:47.120
And you heard from
some of some developers

01:13:47.120 --> 01:13:50.303
and other companies today
who also raised similar concerns

01:13:50.303 --> 01:13:53.890
and they argued it's
not fair to apply this rule

01:13:53.890 --> 01:13:58.010
to customers who
applied for the program,

01:13:58.010 --> 01:14:00.440
but still have reservations program

01:14:00.440 --> 01:14:02.770
still have reservations pending.

01:14:02.770 --> 01:14:04.620
They accompanied extended time

01:14:04.620 --> 01:14:08.023
and expense nodding up well customers.

01:14:11.020 --> 01:14:14.890
Sunrun said, we should
only apply this decisions

01:14:14.890 --> 01:14:18.350
to applications that were submitted

01:14:18.350 --> 01:14:21.730
as going forward from the
effective date of this decision.

01:14:21.730 --> 01:14:23.333
Whenever we adopted a decision.

01:14:25.137 --> 01:14:27.763
The storage association said

01:14:27.763 --> 01:14:32.071
we should only apply
it to applications a week

01:14:32.071 --> 01:14:35.570
after the date that the
proposed decision was issued.

01:14:35.570 --> 01:14:39.540
They suggested that would
be a potential middle ground.

01:14:39.540 --> 01:14:42.480
So I don't wanna minimize
in any way the concerns

01:14:42.480 --> 01:14:44.760
that they've raised about fairness,

01:14:44.760 --> 01:14:48.620
the desire for certainty for developers.

01:14:48.620 --> 01:14:51.579
And we thought very very hard about

01:14:51.579 --> 01:14:55.163
what to do in this situation.

01:14:56.000 --> 01:15:00.010
In the end I think those
considerations were outweighed

01:15:00.010 --> 01:15:04.810
by the need to preserve the
very limited funds available

01:15:04.810 --> 01:15:06.580
for customers with the greatest needs.

01:15:06.580 --> 01:15:09.420
And this was the recommendation we got

01:15:09.420 --> 01:15:10.520
from our energy division.

01:15:10.520 --> 01:15:14.370
They saw a lot of these
funds not being available

01:15:14.370 --> 01:15:16.810
to customers with the greatest need.

01:15:16.810 --> 01:15:18.040
And I'll get some specifics

01:15:18.040 --> 01:15:20.680
about that budget
implications in just one second,

01:15:20.680 --> 01:15:25.480
as I wrap up, I do wanna
say just one word about

01:15:25.480 --> 01:15:29.090
expectations and of
developers and others.

01:15:29.090 --> 01:15:33.320
At least since August 17th

01:15:33.320 --> 01:15:37.620
when I shouldn't assign
Commissioner ruling

01:15:37.620 --> 01:15:41.761
with a scoping memo
that raised the possibility

01:15:41.761 --> 01:15:46.761
that we would impose this
rule, developers have been

01:15:47.200 --> 01:15:50.920
on notice about the
possibility of this rules change.

01:15:50.920 --> 01:15:52.880
And since then there's been over

01:15:52.880 --> 01:15:55.840
1100 applications submitted.

01:15:55.840 --> 01:15:58.360
Now there were applications
obviously submitted

01:15:58.360 --> 01:16:00.620
before that, but at least at that point,

01:16:00.620 --> 01:16:03.650
it was noticed that this might happen.

01:16:03.650 --> 01:16:05.178
So one of the budget implications

01:16:05.178 --> 01:16:08.224
of going forward one way or the other,

01:16:08.224 --> 01:16:13.213
but as I noted there
are about close to 2200

01:16:13.213 --> 01:16:17.240
2184 applications for Wells
that had been submitted

01:16:17.240 --> 01:16:20.370
for which there is not not
a confirmed reservation.

01:16:20.370 --> 01:16:22.463
That totals about $75 million.

01:16:23.411 --> 01:16:26.005
If we would have approved
that decision today,

01:16:26.005 --> 01:16:29.390
we would free up about $75 million

01:16:29.390 --> 01:16:33.350
in the incentives against
60 million would go to PG&amp;E.

01:16:34.240 --> 01:16:38.710
For PG&amp;E that means we
would be able to fund $34 million

01:16:39.596 --> 01:16:44.307
for medically vulnerable
customers, critical care facilities

01:16:44.307 --> 01:16:49.190
and others, plus $8
million in well applications.

01:16:49.190 --> 01:16:52.700
If the applications are
for low income customers.

01:16:52.700 --> 01:16:55.317
So we could meet
everyone on the waiting list,

01:16:55.317 --> 01:16:57.767
but that's if we were
to approve the decision

01:16:57.767 --> 01:17:00.760
that's proposed today
if we take the complete

01:17:00.760 --> 01:17:04.470
opposite approach, the
one that Sunrun suggested

01:17:04.470 --> 01:17:08.797
and allowed all applications
submitted as a data decision

01:17:08.797 --> 01:17:12.730
if we want it adopted today
to be approved without regard

01:17:12.730 --> 01:17:17.180
to income limits, it would
be $75 million less available

01:17:17.180 --> 01:17:19.400
for medically vulnerable

01:17:19.400 --> 01:17:23.840
and other equity resilience customers.

01:17:23.840 --> 01:17:26.180
There are possibilities in between that

01:17:26.180 --> 01:17:28.240
we considered, as I mentioned

01:17:28.240 --> 01:17:33.240
we, the storage industry
suggested a middle date

01:17:33.284 --> 01:17:38.260
some compromise, so
we could consider funding

01:17:38.260 --> 01:17:39.790
all applications submitted

01:17:39.790 --> 01:17:42.781
as of the August 17th sculpting plan.

01:17:42.781 --> 01:17:46.241
At first phase the
possibility this rules change

01:17:46.241 --> 01:17:50.370
all applications submitted August 24th,

01:17:50.370 --> 01:17:53.270
one week after the scoping memo

01:17:53.270 --> 01:17:56.890
or all applications
submitted by September 3rd,

01:17:56.890 --> 01:18:01.233
the date of the proposed
decision, that's the Cal storage.

01:18:02.917 --> 01:18:05.100
So and storage association compromise.

01:18:05.100 --> 01:18:06.640
All of those scenarios however,

01:18:06.640 --> 01:18:09.310
would mean taking
a very significant bite

01:18:09.310 --> 01:18:11.163
out of the budget, other customers.

01:18:12.357 --> 01:18:13.440
And we can talk about the math,

01:18:13.440 --> 01:18:16.640
but basically it would mean 47 million

01:18:16.640 --> 01:18:19.823
or two $59 million less
that wouldn't be available

01:18:19.823 --> 01:18:21.703
to those other customers.

01:18:23.304 --> 01:18:25.982
And ultimately we concluded that

01:18:25.982 --> 01:18:30.380
that was a lot of money
that would not be available.

01:18:30.380 --> 01:18:32.880
I do want to just say one other word

01:18:32.880 --> 01:18:34.810
about the expectations of developers.

01:18:34.810 --> 01:18:37.790
Again, I don't wanna
minimize them in any way.

01:18:37.790 --> 01:18:39.867
They're very important to
the success of a program

01:18:39.867 --> 01:18:43.502
and to creating a market for storage,

01:18:43.502 --> 01:18:47.385
but in the case of PG&amp;E, at least here

01:18:47.385 --> 01:18:50.950
if we were to go ahead
and grandfather in many

01:18:50.950 --> 01:18:55.950
or most of the well applications
as some scenarios would do

01:18:56.423 --> 01:18:58.780
this means less
funding will be available

01:18:58.780 --> 01:18:59.927
for medically vulnerable

01:18:59.927 --> 01:19:03.600
and the other customers
that have already submitted

01:19:03.600 --> 01:19:06.840
applications and are
currently on the waiting list.

01:19:06.840 --> 01:19:09.160
So in practical terms,
there are developers.

01:19:09.160 --> 01:19:10.530
We spend substantial time

01:19:10.530 --> 01:19:13.460
and effort to submit
those applications as well.

01:19:13.460 --> 01:19:15.650
They will not receive funding.

01:19:15.650 --> 01:19:18.680
So really whichever
way we go some number

01:19:18.680 --> 01:19:23.340
of projects that involve time
and efforts by developers

01:19:24.711 --> 01:19:27.930
and created customer
expectations will not receive funding.

01:19:27.930 --> 01:19:30.490
It could either customers
who are medically vulnerable

01:19:30.490 --> 01:19:32.681
or low income and critical facilities

01:19:32.681 --> 01:19:35.690
or customers with
electric, well pump Wells.

01:19:35.690 --> 01:19:37.250
We're not low income.

01:19:37.250 --> 01:19:39.240
That's just an unfortunate
outcome of the fact

01:19:39.240 --> 01:19:43.280
that we do not have enough
money to meet the needs easier.

01:19:43.280 --> 01:19:47.670
And then I do wanna just
tell you again, one final note

01:19:47.670 --> 01:19:51.140
that our decision required
marketing and outreach

01:19:51.140 --> 01:19:54.433
to medically vulnerable
customers, this program.

01:19:55.878 --> 01:19:57.887
And PG&amp;E only began
this program a couple

01:19:57.887 --> 01:20:00.300
of months ago at the end of July

01:20:00.300 --> 01:20:03.673
the other utilities haven't
even started their outreach yet.

01:20:04.630 --> 01:20:07.120
I think it would be
an unfortunate result

01:20:07.120 --> 01:20:10.040
if by the time this outreach began

01:20:10.040 --> 01:20:13.490
and they could have an impact,
there would be no funds left

01:20:13.490 --> 01:20:16.350
for this group of most of this customer.

01:20:16.350 --> 01:20:18.390
So thank you for letting me go

01:20:18.390 --> 01:20:21.590
through that lengthy
discussion and background.

01:20:21.590 --> 01:20:25.183
And now I'm open to
questions and discussion.

01:20:26.720 --> 01:20:30.400
<v ->That was extremely helpful
Commissioner Rechtschaffen.</v>

01:20:30.400 --> 01:20:34.538
I'm hoping those who called
me on item five remained

01:20:34.538 --> 01:20:37.604
involved and engaged on the line

01:20:37.604 --> 01:20:41.000
so they could hear your explanation.

01:20:41.000 --> 01:20:44.040
Are there other comments
or questions on item five?

01:20:44.040 --> 01:20:47.023
Yes. Commissioner Randolph, yes.

01:20:49.594 --> 01:20:51.841
<v ->Thank you Commissioner
Rechtschaffen.</v>

01:20:51.841 --> 01:20:56.540
And I wanted to put this
on the regular agenda

01:20:56.540 --> 01:20:58.620
and discuss the possibility of a hole

01:20:58.620 --> 01:21:03.620
because I am concerned about the impact

01:21:04.064 --> 01:21:08.950
as it relates to applicants
who thought that they qualified

01:21:08.950 --> 01:21:11.250
for a program because
they didn't qualify

01:21:11.250 --> 01:21:14.023
at the time they were
submitting their application.

01:21:15.821 --> 01:21:20.821
I agree wholeheartedly
with the policy going forward.

01:21:23.985 --> 01:21:28.985
I agree that we should
have put tighter controls

01:21:29.550 --> 01:21:31.930
on this and should have
recognized the possibility

01:21:31.930 --> 01:21:36.930
that this category might
dwarf other categories

01:21:37.300 --> 01:21:38.743
in the equity budget.

01:21:41.180 --> 01:21:45.070
But I would ask that we
consider some of these

01:21:45.070 --> 01:21:47.200
middle ground proposals

01:21:47.200 --> 01:21:50.760
because as you mentioned
in your scoping memo,

01:21:50.760 --> 01:21:54.110
that attached to the
memo from energy division

01:21:54.110 --> 01:21:57.580
on August 17th it did
indicate that the Commission

01:21:57.580 --> 01:22:01.010
had concerned about this
and made a recommendation

01:22:01.010 --> 01:22:05.881
that the, we consider applying this rule

01:22:05.881 --> 01:22:10.881
as of the date of that memo,
which was provided to parties

01:22:11.330 --> 01:22:12.520
on August 17th.

01:22:14.329 --> 01:22:17.259
So I think even at that
time, we recognized

01:22:17.259 --> 01:22:21.160
that having it applied to retroactively

01:22:21.160 --> 01:22:24.513
to all applications which
would be a concern.

01:22:25.730 --> 01:22:29.076
And so I would like the Commission to

01:22:29.076 --> 01:22:32.781
consider holding this item
and potentially consider

01:22:32.781 --> 01:22:34.980
some of the other options such

01:22:34.980 --> 01:22:39.980
as the August 17th date or
the date of mailing of the PD.

01:22:43.450 --> 01:22:46.633
<v ->Is that a motion Commissioner?</v>

01:22:50.320 --> 01:22:53.760
<v ->Well, I guess I would say</v>

01:22:53.760 --> 01:22:55.400
I'm happy to have more discussion.

01:22:55.400 --> 01:22:57.423
<v ->Yeah, sure</v>
<v ->And then we</v>

01:22:57.423 --> 01:22:59.265
could talk about.

01:22:59.265 --> 01:23:00.541
<v ->Thank you.</v>

01:23:00.541 --> 01:23:01.670
Okay, before we do that, then I'm sorry.

01:23:01.670 --> 01:23:03.220
'Cause I didn't see any other hands

01:23:03.220 --> 01:23:05.990
that Martha was your
hand up too, I'm sorry.

01:23:05.990 --> 01:23:07.762
<v ->Commissioner Guzman Aceves.</v>

01:23:07.762 --> 01:23:10.277
(indistinct)

01:23:10.277 --> 01:23:11.617
<v ->Thank you Commissioner
Rechtschaffen</v>

01:23:21.488 --> 01:23:23.367
for all your work on this.

01:23:23.367 --> 01:23:24.780
I think this falls

01:23:24.780 --> 01:23:29.340
into this very difficult
category that we've,

01:23:29.340 --> 01:23:32.480
we are faced with often
in terms of priorities.

01:23:32.480 --> 01:23:36.720
And I think we're where I'm falling

01:23:36.720 --> 01:23:40.700
on is really in support
of the PD as it stands in.

01:23:40.700 --> 01:23:43.873
And let me just explain
a couple of reasons why,

01:23:44.779 --> 01:23:48.830
as you've mentioned,
there is a finite budget here

01:23:48.830 --> 01:23:53.640
and we've particularly with
the history of this program.

01:23:53.640 --> 01:23:57.520
We try to reform it to be more equitable

01:23:57.520 --> 01:24:02.330
and in this very difficult situation

01:24:02.330 --> 01:24:05.240
because of the needs
throughout the state

01:24:05.240 --> 01:24:09.800
and needing to be committed
to the issue of equity.

01:24:09.800 --> 01:24:13.710
And that means that we
are prioritizing low income

01:24:13.710 --> 01:24:17.408
households, medically
vulnerable households

01:24:17.408 --> 01:24:22.408
over households that have
more disposable income

01:24:22.560 --> 01:24:24.570
and more resources.

01:24:24.570 --> 01:24:27.630
And that's the difficult decision.

01:24:27.630 --> 01:24:32.090
I think the other big concern that

01:24:32.090 --> 01:24:34.400
I wanted to share that has come about

01:24:34.400 --> 01:24:39.400
with all the very heartwarming
situations that we heard

01:24:40.450 --> 01:24:42.180
about this morning even,

01:24:42.180 --> 01:24:44.380
and the hundreds of emails that we got

01:24:44.380 --> 01:24:47.687
as a result of this proposed change

01:24:47.687 --> 01:24:52.687
is a very distinct one
that I'm gonna raise now

01:24:53.380 --> 01:24:54.750
but we can come back to,

01:24:54.750 --> 01:24:57.306
and it does have an
overlap with this issue of

01:24:57.306 --> 01:24:59.810
prioritizing these targeted communities.

01:24:59.810 --> 01:25:04.810
But unfortunately what one of
my advisors looked into some

01:25:05.140 --> 01:25:09.288
of these contractor and
salespeople that emailed us

01:25:09.288 --> 01:25:13.420
and called, and she
looked at 45 of them.

01:25:13.420 --> 01:25:14.380
So it wasn't all of them,

01:25:14.380 --> 01:25:18.546
but she went and looked
into 45 of these companies.

01:25:18.546 --> 01:25:23.546
Only five of them were
registered with the CSLB.

01:25:23.843 --> 01:25:26.900
And the big concern I have is just

01:25:26.900 --> 01:25:29.730
this big red flag is going
up in my head right now

01:25:29.730 --> 01:25:32.700
that people are going
out to these households.

01:25:32.700 --> 01:25:35.870
I don't know what they're telling them.

01:25:35.870 --> 01:25:38.720
There was a pace caller
that called in this morning,

01:25:38.720 --> 01:25:41.260
I'm particularly it
was like five red flags

01:25:41.260 --> 01:25:42.110
that go up there.

01:25:42.970 --> 01:25:45.573
Are they charging these customers?

01:25:46.510 --> 01:25:49.250
Are they selling these storage systems

01:25:49.250 --> 01:25:52.490
for $40,000 when the
incentive is supposed to pay

01:25:52.490 --> 01:25:55.770
for it all that much lower than that?

01:25:55.770 --> 01:25:57.101
I don't know.

01:25:57.101 --> 01:26:02.000
I'm very concerned
that another big issue

01:26:02.000 --> 01:26:04.310
that we're not guarding for
with these incentive funds

01:26:04.310 --> 01:26:08.020
is one that we did not
do with the NEM program.

01:26:08.020 --> 01:26:11.604
And that is ensuring that
these are licensed contractors

01:26:11.604 --> 01:26:16.160
with their sales agents
that are registered

01:26:16.160 --> 01:26:18.646
and that we can ensure good workmanship,

01:26:18.646 --> 01:26:23.610
good safety, and certainly no fraud.

01:26:23.610 --> 01:26:28.450
So as we look at how we
move hope forward here

01:26:28.450 --> 01:26:31.240
there's certainly the
issue on the equity budget,

01:26:31.240 --> 01:26:32.730
which I'm fully supportive of,

01:26:32.730 --> 01:26:35.780
prioritizing the most
vulnerable among us.

01:26:35.780 --> 01:26:40.426
I'm also asking that
in that same concern

01:26:40.426 --> 01:26:43.970
and this applies for all
customers that we're ensuring

01:26:43.970 --> 01:26:46.608
that these contractors are registered

01:26:46.608 --> 01:26:49.440
and that their sales
agents are registered

01:26:49.440 --> 01:26:53.510
which is the current
law that's existing law.

01:26:53.510 --> 01:26:57.810
And the fact that we could
not find 90% of the folks

01:26:57.810 --> 01:27:01.400
that we looked into and
that's of course anecdotal

01:27:04.772 --> 01:27:05.765
is very concerning.

01:27:05.765 --> 01:27:09.550
So there's a, there's this
question of how we move forward

01:27:09.550 --> 01:27:13.100
in transforming ourselves in
this clean energy economy.

01:27:13.100 --> 01:27:15.210
Are we gonna dedicate
ourselves to ensuring

01:27:15.210 --> 01:27:18.925
that the most vulnerable
come in this transition with us

01:27:18.925 --> 01:27:22.007
and are we gonna protect all customers

01:27:22.007 --> 01:27:24.800
from any sort of fraudulent activity?

01:27:24.800 --> 01:27:28.627
These are the first one
is captured in this PD

01:27:28.627 --> 01:27:31.890
and the second one we
need to continue to work on.

01:27:31.890 --> 01:27:33.083
So thank you very much.

01:27:34.270 --> 01:27:36.180
<v ->Thank you, Commissioner
GGzman Aceves.</v>

01:27:36.180 --> 01:27:37.583
Commissioner Shiloma.

01:27:38.950 --> 01:27:40.063
<v ->Yes. Thank you.</v>

01:27:40.900 --> 01:27:43.850
Well, first of all, thank you to
Commissioner Rechtschaffen

01:27:44.867 --> 01:27:49.867
and his team for all of the
continuing efforts on SFEF.

01:27:51.107 --> 01:27:56.107
I support Commissioner
Randolph's request to

01:27:56.280 --> 01:27:59.989
hold this PD core one meeting

01:27:59.989 --> 01:28:04.989
to evaluate the effectiveness state.

01:28:08.300 --> 01:28:13.300
I'm one who is very
uneasy about any prospect

01:28:13.974 --> 01:28:18.974
of changing the rules in the
decision that we voted out.

01:28:22.550 --> 01:28:27.550
We laid out the criteria
process money, qualifications,

01:28:28.440 --> 01:28:30.100
rules, and so forth.

01:28:30.100 --> 01:28:34.113
And to now go back and say, oops,

01:28:37.790 --> 01:28:41.326
for all those applications
that are pending

01:28:41.326 --> 01:28:43.500
we're gonna change the criteria

01:28:43.500 --> 01:28:47.420
and mold it just from
a general perspective

01:28:48.490 --> 01:28:50.470
I'm very uncomfortable with that.

01:28:50.470 --> 01:28:54.740
And in my regulatory
experience, you know

01:28:54.740 --> 01:28:59.180
at the aerosol in the board,
in my regulatory experience

01:28:59.180 --> 01:29:03.440
in my application of
statute regulations laws,

01:29:03.440 --> 01:29:06.420
and so forth at the
agricultural labor relations board

01:29:06.420 --> 01:29:09.330
this is just not something
that something that is

01:29:15.910 --> 01:29:20.210
well in my perspective.

01:29:20.210 --> 01:29:24.520
So to do such a thing
that, I mean, it's almost

01:29:24.520 --> 01:29:29.520
as though it has to be really
big overriding considerations.

01:29:29.640 --> 01:29:32.563
And I have questions
on that Rechtschaffen.

01:29:36.485 --> 01:29:39.430
First of all, we evidently
made a serious omission

01:29:39.430 --> 01:29:44.350
in not applying or not including
or restricting the monies

01:29:44.350 --> 01:29:47.940
to the income eligibility requirements.

01:29:47.940 --> 01:29:52.730
And I think we do have
a duty to correct this

01:29:52.730 --> 01:29:54.266
look at this, going forward

01:29:54.266 --> 01:29:57.330
there may be some other
considerations as well.

01:29:57.330 --> 01:29:59.957
Now we drill down to PG&amp;E

01:30:00.923 --> 01:30:04.470
and in fact at the LIOB meeting, he said

01:30:05.670 --> 01:30:08.350
they were already fully
subscribed and it's like

01:30:08.350 --> 01:30:11.910
Whoa, what happened was
the shades of what happened

01:30:11.910 --> 01:30:16.910
with the multifamily solar
and my way, that's my dog.

01:30:21.860 --> 01:30:24.563
Sorry about that folks,
if you're gonna hear that.

01:30:27.760 --> 01:30:28.903
Yes, that's right.

01:30:29.950 --> 01:30:33.500
All those monies were were gobbled up

01:30:33.500 --> 01:30:36.200
because people had, you
know it's almost like jeopardy

01:30:38.047 --> 01:30:39.257
who pushes the button first.

01:30:39.257 --> 01:30:42.242
And I said to the PG&amp;E reps that, well,

01:30:42.242 --> 01:30:47.242
if applications are not up to snuff,

01:30:47.880 --> 01:30:50.480
that they need to look at wedding

01:30:50.480 --> 01:30:53.180
the folks in the queue know
that there money is freed up.

01:30:53.180 --> 01:30:58.180
Okay, so in terms of the $16
million in PD&amp;E territory am

01:31:01.870 --> 01:31:06.380
and what this means for
the folks who are in the queue

01:31:06.380 --> 01:31:10.550
and the notion too that are they unlucky

01:31:10.550 --> 01:31:13.750
because the folks who
are processing these

01:31:13.750 --> 01:31:15.867
applications just haven't gotten

01:31:15.867 --> 01:31:16.870
around to their applications.

01:31:16.870 --> 01:31:21.870
Now, the notion of medical rate

01:31:23.840 --> 01:31:28.220
and the low income, I don't know.

01:31:28.220 --> 01:31:30.470
We don't know how
many of these applications

01:31:30.470 --> 01:31:33.247
fit in this bin versus that bin.

01:31:33.247 --> 01:31:38.060
And how many dollars are freed

01:31:38.060 --> 01:31:42.523
up depending on, you know,
August 17th, is it August 12th?

01:31:44.027 --> 01:31:46.240
Is it five days after this date?

01:31:46.240 --> 01:31:47.073
Isn't the date?

01:31:48.080 --> 01:31:52.589
I think that the visitor,
we should do that analysis

01:31:52.589 --> 01:31:56.447
to see if doing a
retroactive application

01:31:59.820 --> 01:32:03.850
which I think is a big deal.

01:32:03.850 --> 01:32:06.161
It, when we adopt regulations

01:32:06.161 --> 01:32:11.161
those are pretty sacrosanct
and folks are given expectations

01:32:12.146 --> 01:32:15.043
and people haven't
spent resources to apply

01:32:15.043 --> 01:32:18.860
and they, and again, how
much of an expectation

01:32:18.860 --> 01:32:21.903
and then to have the
resemblance of the rug pulled out

01:32:23.704 --> 01:32:28.450
from under them, what is
the impact from these monies

01:32:28.450 --> 01:32:31.620
and who else has, is ACU
and who gets moved up

01:32:34.666 --> 01:32:38.777
in the tooth to do that kind
of regulatory retroactivity.

01:32:40.460 --> 01:32:43.160
There were times that we
faced this kind of thing too,

01:32:44.788 --> 01:32:47.873
as mud and we really felt that when you,

01:32:50.040 --> 01:32:53.940
if the promises made
promises kept kind of notion

01:32:53.940 --> 01:32:58.580
and to override that
we really need to know

01:32:58.580 --> 01:32:59.413
what we're doing.

01:32:59.413 --> 01:33:02.340
So I'm just respectfully asking

01:33:02.340 --> 01:33:05.300
and supporting our
Commissioner Mandel to request

01:33:05.300 --> 01:33:10.300
that we hold this for one
meeting to have some

01:33:10.707 --> 01:33:15.500
of these questions answered
before taking a vote, thank you.

01:33:20.330 --> 01:33:22.870
<v ->Thank you,
Commissioner Shiroma.</v>

01:33:22.870 --> 01:33:26.703
There are any other comments
or thoughts on item five?

01:33:28.570 --> 01:33:33.570
Okay, so do we have a motion to...

01:33:34.610 --> 01:33:38.860
<v ->Well, did you want to weigh in</v>

01:33:38.860 --> 01:33:41.010
I'd be interested in
hearing your thoughts.

01:33:42.640 --> 01:33:45.330
<v ->I share some of the concerns</v>

01:33:45.330 --> 01:33:49.750
of my fellow Commissioners
I'm particularly alarmed

01:33:49.750 --> 01:33:53.408
and I wanna thank Commissioner
Guzman Aceves staff,

01:33:53.408 --> 01:33:56.299
or doing an and yes you said anecdotal,

01:33:56.299 --> 01:33:59.250
but if you looked at that I was,

01:33:59.250 --> 01:34:02.905
those are shocking revelations

01:34:02.905 --> 01:34:06.787
and I hope we can do a
little bit deeper dive on that,

01:34:06.787 --> 01:34:10.703
but thank you, Martha
for going to that extent,

01:34:12.226 --> 01:34:17.226
I do have some concerns
about retroactive, just in general

01:34:17.480 --> 01:34:22.450
philosophically about
retroactive really changing rules.

01:34:22.450 --> 01:34:27.450
I am very concerned
about the equity program

01:34:30.380 --> 01:34:33.340
and it being oversubscribed so quickly

01:34:33.340 --> 01:34:37.080
when this was to be
a three year rollout.

01:34:37.080 --> 01:34:39.900
So on balance, I think
we have to address it

01:34:39.900 --> 01:34:44.900
and I agree Commissioner
Rechtschaffen with your assessment.

01:34:46.120 --> 01:34:50.380
So, but I do feel that we
need some more consideration

01:34:50.380 --> 01:34:54.001
on this item, and I
think it's worth our while

01:34:54.001 --> 01:34:58.393
and it's worth our
time to take some time.

01:35:00.460 --> 01:35:03.560
<v ->Well, I'm happy to do that.</v>

01:35:03.560 --> 01:35:05.563
I'm happy to respect the desire

01:35:05.563 --> 01:35:09.650
from Commissioner Randolph
to Commissioner Shiroma

01:35:09.650 --> 01:35:10.750
to hold it for a meeting

01:35:10.750 --> 01:35:15.750
and to think about it some
more, Commissioner Shiroma,

01:35:16.983 --> 01:35:20.660
I don't know that we can, there are,

01:35:20.660 --> 01:35:23.240
that we'll get any more
answers to your question

01:35:23.240 --> 01:35:25.760
about who gets moved up in the queue

01:35:25.760 --> 01:35:29.640
and what happens to the applications.

01:35:29.640 --> 01:35:31.385
I think they're just processed

01:35:31.385 --> 01:35:35.042
in accordance with
when they were received.

01:35:35.042 --> 01:35:39.160
Of course, if we move the
decision, a couple of weeks out

01:35:39.160 --> 01:35:43.220
me more applications will
get confirmed reservations

01:35:43.220 --> 01:35:45.340
or just by the operation of time

01:35:45.340 --> 01:35:48.470
that will mean more people
will be able to participate

01:35:48.470 --> 01:35:49.943
under the old rules

01:35:49.943 --> 01:35:53.090
but I don't know that we will
be able to get any answers

01:35:53.090 --> 01:35:58.090
to any of the broader
questions that you raised.

01:35:59.020 --> 01:36:01.443
And of course, both of you
and Commissioner Randolph

01:36:01.443 --> 01:36:04.480
raise more larger concerns

01:36:04.480 --> 01:36:07.341
than just the specific
operational details

01:36:07.341 --> 01:36:11.230
but I'm happy to respect the whole.

01:36:11.230 --> 01:36:14.167
So I'm, I support doing that

01:36:14.167 --> 01:36:16.400
and we can take a couple more weeks

01:36:16.400 --> 01:36:18.100
and continue to look at the issue.

01:36:20.450 --> 01:36:22.283
<v ->I think that it's advisable.</v>

01:36:24.610 --> 01:36:26.790
Okay. Any other comments?

01:36:26.790 --> 01:36:31.490
<v ->Yes. I just wanted to
make a final comment that</v>

01:36:31.490 --> 01:36:35.745
I appreciate how challenging this is.

01:36:35.745 --> 01:36:40.511
And I understand that even under the,

01:36:40.511 --> 01:36:44.640
in my mind the best of
circumstances, which might be,

01:36:44.640 --> 01:36:49.400
you know some compromise
around the August 17th date

01:36:49.400 --> 01:36:52.250
or something like that, I
recognize that there's gonna be

01:36:53.340 --> 01:36:56.522
some level of
retroactivity in any event,

01:36:56.522 --> 01:37:01.522
but I do kind of share
Commissioner Sheroma's

01:37:02.600 --> 01:37:03.800
concerns about that

01:37:03.800 --> 01:37:06.310
and I appreciate you at least giving it

01:37:07.210 --> 01:37:08.500
you know, a little more thought.

01:37:08.500 --> 01:37:10.340
I know you've thought
about it really carefully

01:37:10.340 --> 01:37:11.630
but just wanted to have the

01:37:11.630 --> 01:37:13.590
opportunity to share our thoughts

01:37:13.590 --> 01:37:15.730
whichever way you decide to come

01:37:15.730 --> 01:37:18.210
out before you bring the item back.

01:37:18.210 --> 01:37:19.203
So I appreciate it.

01:37:20.090 --> 01:37:22.960
<v ->Of course, I do think what
President Batjer has said</v>

01:37:22.960 --> 01:37:26.260
is really the hardest
nut to crack about this.

01:37:26.260 --> 01:37:31.260
This is supposed to last
2024, and here we are in 2020

01:37:32.117 --> 01:37:35.073
and we're seeing the program, you know

01:37:35.073 --> 01:37:37.986
already a waiting list on
PGD and the other utilities

01:37:37.986 --> 01:37:41.117
close to their maximum.

01:37:41.117 --> 01:37:44.700
And we're seeing a lot of
interest in other crunches

01:37:44.700 --> 01:37:46.520
in the program as well.

01:37:46.520 --> 01:37:49.590
And we have an item for
consideration in a couple

01:37:49.590 --> 01:37:52.700
of weeks to shift some money from the

01:37:52.700 --> 01:37:56.301
general commercial budget
to the equity, to accommodate

01:37:56.301 --> 01:37:59.600
a backlog and interest in projects there

01:37:59.600 --> 01:38:04.150
with the focus on wildfire resilience.

01:38:04.150 --> 01:38:06.720
And of course, every year
it's gonna be more acute

01:38:06.720 --> 01:38:09.790
given the rolling threat
we faced by wildfires.

01:38:09.790 --> 01:38:12.590
We just don't have enough
money to deal with the new year.

01:38:12.590 --> 01:38:14.043
That's the bottom line.

01:38:19.410 --> 01:38:22.893
Okay. Any other comments
or thoughts on item five?

01:38:28.781 --> 01:38:31.280
<v ->I'm echoing
Commissioner Randolph.</v>

01:38:31.280 --> 01:38:35.530
I knew there, there are
practicalities to consider

01:38:38.290 --> 01:38:40.680
in going forward.

01:38:40.680 --> 01:38:45.680
And I can also see a, especially

01:38:47.670 --> 01:38:52.670
with the August 17th scoping
ruling saying in that room

01:38:54.542 --> 01:38:59.470
that a recommendation
from staff that's Commission

01:38:59.470 --> 01:39:02.541
I consider applying any
new eligibility rules that

01:39:02.541 --> 01:39:07.541
may be adopted to apply
to all applications submitted

01:39:09.910 --> 01:39:11.630
after today's date.

01:39:11.630 --> 01:39:14.563
Now that date was August
12th, that was scoping.

01:39:16.363 --> 01:39:17.196
It was issued to all parties

01:39:17.196 --> 01:39:20.502
and unfit service list on August 17th.

01:39:20.502 --> 01:39:25.502
And I can see with that
communicate embedded right there

01:39:25.840 --> 01:39:30.840
in that scoping ruling, that
could be a heavy consideration

01:39:33.570 --> 01:39:37.810
for a retroactive again considerations.

01:39:37.810 --> 01:39:40.670
So I guess that's my long
winded way of saying I do.

01:39:40.670 --> 01:39:43.530
I didn't want to be reasonable
going forward on this.

01:39:43.530 --> 01:39:47.800
And I do, I did want to
make note of that scoping

01:39:48.767 --> 01:39:49.600
like, thank you.

01:39:51.870 --> 01:39:53.940
<v ->Thank you Commissioner Shiroma.</v>

01:39:53.940 --> 01:39:55.503
Any other comments or thoughts?

01:39:57.310 --> 01:39:58.483
Okay, seeing none.

01:40:04.130 --> 01:40:05.390
<v ->Yes. This is Hans Simon.</v>

01:40:05.390 --> 01:40:07.163
You need a motion?

01:40:07.163 --> 01:40:10.383
<v ->I know. (laughs)</v>

01:40:11.880 --> 01:40:13.520
<v ->Do I have an emotion</v>

01:40:13.520 --> 01:40:17.393
or to hold or to do
anything with item five?

01:40:18.400 --> 01:40:20.000
<v ->I'll make a motion to hold it.</v>

01:40:21.340 --> 01:40:22.693
<v ->Okay. Do I have a second?</v>

01:40:24.090 --> 01:40:25.570
<v ->I'll seconds the motion.</v>

01:40:25.570 --> 01:40:27.567
<v ->Oh okay, it's been moved</v>

01:40:27.567 --> 01:40:31.370
and seconded to hold this item I hold

01:40:31.370 --> 01:40:34.830
until when do you want
that to be part of the motion?

01:40:34.830 --> 01:40:37.778
The October 22nd meeting or?

01:40:37.778 --> 01:40:39.096
<v ->Yeah.</v>

01:40:39.096 --> 01:40:43.310
<v ->Okay, well, hold the
motion is to hold item five</v>

01:40:43.310 --> 01:40:47.040
till the October 22nd
voting meeting 2020.

01:40:47.040 --> 01:40:50.943
Well, the agenda
clerk please call the roll.

01:40:52.616 --> 01:40:54.856
Commissioner Shiroma.

01:40:54.856 --> 01:40:55.970
<v ->Aye.</v>

01:40:55.970 --> 01:40:58.148
<v ->Commissioner Guzman Aceves.</v>

01:40:58.148 --> 01:40:59.540
<v ->Aye.</v>

01:40:59.540 --> 01:41:01.457
<v ->Commissioner Randolph?</v>

01:41:01.457 --> 01:41:03.152
<v ->Yes.</v>

01:41:03.152 --> 01:41:04.498
<v ->Commissioner Rechtschaffen.</v>

01:41:04.498 --> 01:41:05.331
<v ->Yes.</v>

01:41:06.373 --> 01:41:07.918
<v ->President Batjer.</v>

01:41:07.918 --> 01:41:09.055
<v ->Yes. Thank you.</v>

01:41:09.055 --> 01:41:13.894
It's unanimous to hold items five

01:41:13.894 --> 01:41:17.850
until October 22nd voting meeting.

01:41:17.850 --> 01:41:19.040
Thank you all.

01:41:19.040 --> 01:41:22.240
Now, moving on on the
regular agenda items,

01:41:22.240 --> 01:41:26.950
our next agenda item is item seven

01:41:26.950 --> 01:41:29.310
and that is also
Commissioner Rechtschaffen

01:41:29.310 --> 01:41:33.360
but I believe Cheryl Lee
from the energy division

01:41:33.360 --> 01:41:35.053
will be giving a presentation.

01:41:37.110 --> 01:41:38.860
<v ->That's correct
President Batjer.</v>

01:41:38.860 --> 01:41:40.350
<v ->Okay. Thank you.</v>

01:41:40.350 --> 01:41:42.353
Is Cheryl on line?

01:41:43.380 --> 01:41:45.800
<v ->Yes, morning President Batjer.</v>

01:41:45.800 --> 01:41:47.210
<v ->Hi Cheryl. Good morning.</v>

01:41:47.210 --> 01:41:49.672
Thank you. Go ahead.

01:41:49.672 --> 01:41:51.610
<v ->Yes, there's a few slides.</v>

01:41:51.610 --> 01:41:53.360
If those could be pulled up please.

01:41:55.583 --> 01:41:58.610
Thank you. Good morning Commissioners.

01:41:58.610 --> 01:42:01.290
I'm Cheryl Lee, supervisor
of energy divisions

01:42:01.290 --> 01:42:04.092
renewable procurement and
market development section

01:42:04.092 --> 01:42:06.523
because, go to the next slide please.

01:42:08.700 --> 01:42:11.010
So just start off just
wanting to give an overview

01:42:11.010 --> 01:42:13.780
of the decisions, and then
I'll get into a few details

01:42:13.780 --> 01:42:17.113
of gene that program,
as well as the decision.

01:42:18.350 --> 01:42:20.530
This decision resumed
the renewable market

01:42:20.530 --> 01:42:22.000
adjusting tariff program

01:42:23.255 --> 01:42:24.851
as an administratively set

01:42:24.851 --> 01:42:26.270
six price feeding tariff program.

01:42:26.270 --> 01:42:29.463
It has been on dissension
since December, 2017.

01:42:29.463 --> 01:42:32.612
And so the decision
would be strength program.

01:42:32.612 --> 01:42:35.360
The decision also authorizes pricing

01:42:35.360 --> 01:42:38.830
and process changes to bring
REMAT into compliance with

01:42:39.816 --> 01:42:42.411
both the public utilities
regulatory policies act

01:42:42.411 --> 01:42:47.411
as well as section 399.20
of the public utilities data.

01:42:50.330 --> 01:42:51.730
Next slide, please.

01:42:56.950 --> 01:42:58.550
So to give some context

01:42:59.561 --> 01:43:01.982
for today's decisions wanted to start

01:43:01.982 --> 01:43:04.110
off with giving some background
on the REMAT program.

01:43:04.110 --> 01:43:06.403
The program was originally
established in 2006 by AB 1969,

01:43:06.403 --> 01:43:11.233
and has been modified
several times since.

01:43:12.920 --> 01:43:15.250
The program requires
the large industrial

01:43:15.250 --> 01:43:17.411
and utilities to procure
renewable electricity.

01:43:17.411 --> 01:43:21.950
Yes, he didn't terrace as
a feeding tariff program.

01:43:21.950 --> 01:43:24.090
It is intended to provide
a simple mechanism

01:43:24.090 --> 01:43:26.200
for small renewable generators to

01:43:26.200 --> 01:43:27.895
sell renewable electricity utility

01:43:27.895 --> 01:43:31.560
at predefined terms and
conditions without engaging

01:43:31.560 --> 01:43:35.043
in timely and potentially
costly contract negotiation.

01:43:36.120 --> 01:43:37.950
REMAT program is a subset

01:43:37.950 --> 01:43:40.543
within the renewables
portfolio standard program.

01:43:42.534 --> 01:43:43.367
And as such the procurement

01:43:43.367 --> 01:43:46.359
from the program can count towards the

01:43:46.359 --> 01:43:48.259
industrial utilities RPS requirements.

01:43:49.690 --> 01:43:54.450
Do utilities also the through
a specific REMAT terrace

01:43:54.450 --> 01:43:56.750
and we met standard
power purchase agreements.

01:43:57.740 --> 01:43:58.740
Through the program,

01:44:00.596 --> 01:44:01.988
the industrial utilities are the pitcher

01:44:01.988 --> 01:44:03.560
approximately 500
megawatts out of the statewide

01:44:03.560 --> 01:44:05.633
target was 750 and Glock.

01:44:07.020 --> 01:44:10.410
Eligibility for the program
is restricted to RPS

01:44:10.410 --> 01:44:12.670
eligible facilities that
are three megawatts

01:44:14.130 --> 01:44:15.463
or less in size.

01:44:16.394 --> 01:44:17.690
Another feature of the program is

01:44:17.690 --> 01:44:19.670
that it is separated into
three different categories

01:44:19.670 --> 01:44:24.670
peaking, non peaking and
base-load examples of technologies.

01:44:25.460 --> 01:44:27.853
We're thinking would be
solar PD for non peaking

01:44:27.853 --> 01:44:31.880
wind, or small hydro, and
for base-load electricity

01:44:31.880 --> 01:44:33.453
from landfill gas facilities.

01:44:36.510 --> 01:44:37.623
Next slide, please.

01:44:41.520 --> 01:44:43.367
So getting into the details of decision

01:44:43.367 --> 01:44:47.380
and what it does, a decision we'll place

01:44:47.380 --> 01:44:50.580
the existing pricing adjustment
mechanism of the program

01:44:50.580 --> 01:44:53.080
with an administrative
as he determined six price.

01:44:54.050 --> 01:44:57.830
So it specifically
establishes a methodology

01:44:57.830 --> 01:45:00.997
for setting the purchase price
for each program category

01:45:00.997 --> 01:45:02.933
as IOUs appointed cost.

01:45:04.440 --> 01:45:07.455
Category prices are the
same for the three IOUs,

01:45:07.455 --> 01:45:08.930
but payments will be adjusted

01:45:08.930 --> 01:45:12.213
by the individual IOUs
time of 12 weeks doctors.

01:45:13.400 --> 01:45:15.780
The prices will be based
on a weighted average

01:45:15.780 --> 01:45:19.550
of the three hour use recent
longterm Proteus contracts

01:45:19.550 --> 01:45:21.450
with facilities that are 20 megawatts

01:45:21.450 --> 01:45:25.440
or less it's the future energy

01:45:25.440 --> 01:45:27.830
division will adjust
the pricing annually

01:45:27.830 --> 01:45:30.410
and potentially also consider pricing

01:45:30.410 --> 01:45:32.490
from both the community
choice aggregators

01:45:32.490 --> 01:45:34.390
as well as electric service providers.

01:45:36.150 --> 01:45:38.650
The decision also removes
the bimonthly program

01:45:38.650 --> 01:45:40.740
periods and cap.

01:45:40.740 --> 01:45:43.160
And this is because they were related

01:45:43.160 --> 01:45:45.860
to the price adjusted
mechanism that is being replaced

01:45:46.917 --> 01:45:47.750
in this position.

01:45:47.750 --> 01:45:50.580
The decision also maintains
existing program cues

01:45:50.580 --> 01:45:52.300
and key methodology.

01:45:52.300 --> 01:45:55.453
That is the first come first
serve aspect of the program.

01:45:56.530 --> 01:46:01.530
Finally, the decision
orders these changes

01:46:02.100 --> 01:46:05.450
to be implemented,
that utilities who cheer

01:46:05.450 --> 01:46:08.040
to advice letters to update the tariffs

01:46:09.510 --> 01:46:10.443
and standard contracts.

01:46:11.990 --> 01:46:13.320
That concludes my presentation

01:46:13.320 --> 01:46:16.540
and is happy to answer
any questions that you have.

01:46:16.540 --> 01:46:18.897
<v ->Thank you Cheryl,
are there any questions</v>

01:46:18.897 --> 01:46:22.577
for Cheryl and for Rechtschaffen as well

01:46:22.577 --> 01:46:24.873
on item number seven.

01:46:28.696 --> 01:46:33.040
<v ->And I was gonna present
that drive a couple of things.</v>

01:46:33.040 --> 01:46:34.330
I have a couple of things to say,

01:46:34.330 --> 01:46:36.370
but I first want to make sure

01:46:36.370 --> 01:46:38.830
that there are no questions for Cheryl.

01:46:38.830 --> 01:46:43.050
<v ->Sure. I don't see that
anyone's raising their hands.</v>

01:46:43.050 --> 01:46:45.700
So thank you again, Cheryl

01:46:45.700 --> 01:46:47.720
and Commissioner Rechtschaffen.

01:46:48.756 --> 01:46:50.117
<v ->Thank you very much</v>

01:46:50.117 --> 01:46:51.460
and thank you, Cheryl.

01:46:51.460 --> 01:46:54.440
Cheryl has done incredible
work on this decision

01:46:54.440 --> 01:46:58.550
and in all of our PURPA decisions,

01:46:58.550 --> 01:47:01.950
it's an extremely complex area of law

01:47:01.950 --> 01:47:06.820
with federal court decisions,
changing the rules as well

01:47:06.820 --> 01:47:09.840
as constant agitation at
first and foreclosure changes.

01:47:09.840 --> 01:47:13.890
So it's very, very
helpful to have people

01:47:13.890 --> 01:47:16.575
with Cheryl's expertise, as
well as others who work on this.

01:47:16.575 --> 01:47:20.772
This decision opens REMAT
after a several year hiatus.

01:47:20.772 --> 01:47:23.356
And I think that's
important and helpful.

01:47:23.356 --> 01:47:28.356
We have authority under
permit to require utilities

01:47:30.270 --> 01:47:34.410
to purchase electricity from
small, renewable generators

01:47:34.410 --> 01:47:36.771
and REMAT that there were avoided costs,

01:47:36.771 --> 01:47:39.200
the costs they would otherwise

01:47:40.570 --> 01:47:42.690
have to pay to buy the
electricity elsewhere.

01:47:42.690 --> 01:47:47.516
And we have been involved in litigation

01:47:47.516 --> 01:47:50.350
in which federal courts has made clear

01:47:50.350 --> 01:47:53.960
that we need to modify the REMAT program

01:47:53.960 --> 01:47:56.080
and its pricing mechanism to ensure

01:47:56.080 --> 01:47:57.780
that the contract price is truly

01:47:57.780 --> 01:48:02.710
represent avoided costs parties.

01:48:02.710 --> 01:48:05.192
And Cheryl went through some
of the changes we've made.

01:48:05.192 --> 01:48:08.040
We have a number of
parties who strongly disagree

01:48:08.040 --> 01:48:10.196
with our interpretation
of what the law requires

01:48:10.196 --> 01:48:14.483
but our legal division
feels very strongly.

01:48:16.033 --> 01:48:19.259
And I'm convinced that we do
need to modify REMAT in this

01:48:19.259 --> 01:48:22.590
way to come forward
with a federal court ruling.

01:48:22.590 --> 01:48:26.485
And basically we as
the decision we're setting

01:48:26.485 --> 01:48:30.920
wholesale prices for the
price of electricity and REMAT,

01:48:30.920 --> 01:48:35.920
we can only do that if we
have a compliance program,

01:48:35.940 --> 01:48:38.050
it doesn't mean that REMAT has to comply

01:48:38.050 --> 01:48:39.410
with all aspects of profit

01:48:39.410 --> 01:48:43.473
but we do need to have a
corporate compliance program.

01:48:44.789 --> 01:48:46.510
If we could have just simply

01:48:46.510 --> 01:48:51.510
we have shoes that had
existing, we would have done that.

01:48:51.610 --> 01:48:52.900
Would've been much easier.

01:48:52.900 --> 01:48:55.280
We just don't think
that's legally tenable.

01:48:55.280 --> 01:48:56.450
I just want to note a couple

01:48:56.450 --> 01:49:00.750
of notable revisions to the
proposed decision that were made

01:49:00.750 --> 01:49:04.700
in the final version to
better reflect the cost

01:49:04.700 --> 01:49:07.633
of procurement from small generators.

01:49:08.740 --> 01:49:11.660
We switched the reference point instead

01:49:11.660 --> 01:49:14.450
of using the weighted average

01:49:14.450 --> 01:49:18.370
of all recent renewable IOU contracts.

01:49:18.370 --> 01:49:20.512
We instead use contracts

01:49:20.512 --> 01:49:21.630
with facilities that are 20 megawatts

01:49:21.630 --> 01:49:24.257
and under this is Cheryl mentioned

01:49:24.257 --> 01:49:27.210
that's a more representative
that's number one.

01:49:27.210 --> 01:49:30.438
We said, we're going to
use all renewable contracts

01:49:30.438 --> 01:49:34.000
not all sides that only
20 megawatts or less lean

01:49:34.000 --> 01:49:35.950
that as a program for small generation.

01:49:36.850 --> 01:49:39.930
Definitely in comments said seven years

01:49:39.930 --> 01:49:41.334
is too far to go back.

01:49:41.334 --> 01:49:43.353
When renewable contracts

01:49:43.353 --> 01:49:47.575
contract prices, the
older prices are outdated.

01:49:47.575 --> 01:49:50.940
Renewable prices have gone down.

01:49:50.940 --> 01:49:53.774
We took a very careful
second look at this.

01:49:53.774 --> 01:49:56.763
We are constrained though,

01:49:57.955 --> 01:50:01.277
in our ability to use a
shorter time period is just

01:50:02.767 --> 01:50:07.340
haven't been enough
new renewable contracts

01:50:07.340 --> 01:50:10.610
extra executed by all you use

01:50:10.610 --> 01:50:15.410
in recent years to have enough
of a reference point enough

01:50:15.410 --> 01:50:20.410
of a base lease contracts from
IOU to determine an average

01:50:22.602 --> 01:50:25.310
if the contract prices
are still confidential

01:50:25.310 --> 01:50:26.930
otherwise we can't comport

01:50:26.930 --> 01:50:30.910
with our confidentiality rules
to get that requisite number.

01:50:30.910 --> 01:50:32.858
We had to go back at least six years.

01:50:32.858 --> 01:50:34.960
We did have a sufficient number

01:50:34.960 --> 01:50:39.164
of contracts to able to allow
us to make a small change.

01:50:39.164 --> 01:50:42.450
And we established
prices using contracts

01:50:42.450 --> 01:50:43.660
in the past six years,

01:50:43.660 --> 01:50:45.460
rather than in the past seven years.

01:50:46.970 --> 01:50:49.030
Finally, at some point we requested

01:50:49.030 --> 01:50:53.720
that we use renewable contracts
that the CCA have entered

01:50:53.720 --> 01:50:56.835
into into, into determining
REMAT contract prices.

01:50:56.835 --> 01:51:00.143
We don't have a complete set data set.

01:51:03.080 --> 01:51:05.773
Reflecting DCA contract
prices mentioned decision allows

01:51:06.640 --> 01:51:10.570
for us, allows for staff to
make annual price adjustments.

01:51:10.570 --> 01:51:12.240
And it does allow staff to consider

01:51:12.240 --> 01:51:16.770
these prices when doing so, if
we get a complete data set so

01:51:16.770 --> 01:51:20.878
that we can adequately
weight the contracts we have.

01:51:20.878 --> 01:51:24.220
So these adjustments would
be made by the energy division

01:51:24.220 --> 01:51:27.241
and the draft resolution
subject to our approval.

01:51:27.241 --> 01:51:31.460
And if we get the
data, it can include the

01:51:31.460 --> 01:51:34.892
CCA contract data
other load serving entities.

01:51:34.892 --> 01:51:36.880
We could potentially use less

01:51:36.880 --> 01:51:39.480
than six years of contract prices.

01:51:39.480 --> 01:51:43.843
And ideally if we get
that, we could reflect

01:51:43.843 --> 01:51:46.110
whatever price we determined to

01:51:46.110 --> 01:51:48.319
reflect the most recent RPS contracts

01:51:48.319 --> 01:51:52.030
for each of the three
categories that Cheryl identified

01:51:53.121 --> 01:51:54.910
the parties raise a bunch

01:51:54.910 --> 01:51:57.000
of other issues that could be relevant

01:51:57.000 --> 01:52:00.730
to considering setting the REMAT price.

01:52:00.730 --> 01:52:03.630
We did not have enough information

01:52:03.630 --> 01:52:08.150
in the record to determine
if adjustments based

01:52:08.150 --> 01:52:10.833
on those were warranted
or if so, how much.

01:52:12.190 --> 01:52:13.023
And that was unfortunate.

01:52:13.023 --> 01:52:15.130
We may reconsider these issues

01:52:15.130 --> 01:52:18.693
as appropriate in the future,
but we could not act on them.

01:52:19.672 --> 01:52:21.672
Now. I want to, again, thank Cheryl Lee.

01:52:22.858 --> 01:52:23.958
Also, Valerie Albright

01:52:26.399 --> 01:52:27.232
Christine Hammond, and
Stephanie Hein in the legal division

01:52:30.601 --> 01:52:35.101
know that an incredible job
protecting health programs

01:52:37.440 --> 01:52:38.735
and litigating these perfect cases

01:52:38.735 --> 01:52:39.815
and also ALJ lock a hot Paul

01:52:39.815 --> 01:52:41.777
and also my advisor, Sandy Goldberg.

01:52:41.777 --> 01:52:44.030
And with that, I asked for
your support in this item.

01:52:44.030 --> 01:52:45.730
<v ->Okay. Thank you again.</v>

01:52:45.730 --> 01:52:47.477
Thank you Cheryl.

01:52:47.477 --> 01:52:49.397
And thank you,
Commissioner Rechtschaffen.

01:52:49.397 --> 01:52:53.073
for the fuller explanation
on, on this very difficult

01:52:53.073 --> 01:52:57.028
very difficult item.

01:52:57.028 --> 01:53:00.420
Are there any comments, questions?

01:53:00.420 --> 01:53:02.723
Yes. Commissioner Guzman Aceves.

01:53:03.930 --> 01:53:05.588
<v ->Thank you.</v>

01:53:05.588 --> 01:53:09.320
I just want to recognize
the high staff time

01:53:09.320 --> 01:53:12.503
per megawatt ratio on this issue.

01:53:13.900 --> 01:53:17.651
And certainly the amount
of amazing amount

01:53:17.651 --> 01:53:21.657
of staff work on finding,
I think a great balance.

01:53:21.657 --> 01:53:25.069
I think you were generous,
but not overly generous

01:53:25.069 --> 01:53:30.069
and the adaptability that
you've put forward here is

01:53:30.260 --> 01:53:34.030
is really smart and something
that we don't not to do

01:53:34.030 --> 01:53:38.280
in our decisions to allow
us to maintain a pace

01:53:38.280 --> 01:53:40.360
on our regulations.

01:53:40.360 --> 01:53:41.852
So we don't get behind

01:53:41.852 --> 01:53:46.010
we don't anticipate things
as in our last conversation.

01:53:46.010 --> 01:53:50.100
So anyway, I think this
is good to get us back

01:53:50.100 --> 01:53:53.210
on track to getting these
much needed generation

01:53:53.210 --> 01:53:55.330
even though they're small chunks.

01:53:55.330 --> 01:53:58.448
And I know they're very
important to communities

01:53:58.448 --> 01:54:02.640
and I think it's a
really great decision.

01:54:02.640 --> 01:54:06.083
So thank you very much for
everybody's hard work on this.

01:54:08.800 --> 01:54:09.633
<v ->Thank you.</v>

01:54:09.633 --> 01:54:11.460
Any other comments?

01:54:11.460 --> 01:54:12.763
Yes. Commissioner Sharona.

01:54:14.060 --> 01:54:14.893
<v ->Thank you.</v>

01:54:14.893 --> 01:54:18.106
I wanted to add my thanks
Commissioner Aceves.

01:54:18.106 --> 01:54:21.210
Erekson often to you and judge
I'll walk and Paul and Cheryl

01:54:23.032 --> 01:54:25.732
and the team in legal and
energy division, the journey

01:54:27.750 --> 01:54:32.730
through the courts and the federal

01:54:32.730 --> 01:54:35.740
requirements has been quite torturous.

01:54:35.740 --> 01:54:40.403
And, but here we are ready
to relaunch a jumpstart.

01:54:43.890 --> 01:54:46.145
What have you reopened this program?

01:54:46.145 --> 01:54:49.989
It's an important and
meaningful milestone.

01:54:49.989 --> 01:54:54.989
Yes, complicated many
rules, many legal ramifications

01:54:57.960 --> 01:54:59.395
and it had to be navigated.

01:54:59.395 --> 01:55:04.395
And I think that the proposed
musician has navigated all

01:55:04.820 --> 01:55:09.820
of that to a very viable
set of criteria and the way

01:55:10.653 --> 01:55:15.653
for developers and parties
to partake of the program.

01:55:19.060 --> 01:55:23.021
So I'm excited to the prospect
of other reopening of this

01:55:23.021 --> 01:55:27.673
as Commissioner,
because this is important

01:55:27.673 --> 01:55:32.673
for any small chunks to be
viable and to move forward.

01:55:33.380 --> 01:55:36.834
And as we heard from Pete
sound scholars or reports

01:55:36.834 --> 01:55:41.730
or it's all essential, small or large

01:55:41.730 --> 01:55:44.330
in terms of these renewable projects

01:55:44.330 --> 01:55:49.094
that are going to get us
towards those state clinicals

01:55:49.094 --> 01:55:53.043
and also provide for the
reliability that we need.

01:55:53.043 --> 01:55:57.700
So I look forward to
voting aye, on this PD.

01:55:57.700 --> 01:55:58.533
Thank you.

01:56:00.110 --> 01:56:01.810
<v ->Thank you,
Commissioner Shiroma.</v>

01:56:02.840 --> 01:56:05.978
<v ->I just add my words to
have, thanks to this is a very</v>

01:56:05.978 --> 01:56:10.978
the PD represents, I think,
a very difficult compromise

01:56:12.211 --> 01:56:15.190
or difficult to reach compromise.

01:56:15.190 --> 01:56:18.119
And as Commissioner Sherma just said

01:56:18.119 --> 01:56:23.010
I learned in real time in August

01:56:23.010 --> 01:56:28.010
and September that every
little chunk helps tremendously.

01:56:28.220 --> 01:56:32.277
So even though these are
small, we're all quoting Martha

01:56:32.277 --> 01:56:34.723
on this small chunks,
they're really important.

01:56:35.620 --> 01:56:38.980
So this is a long and winding road.

01:56:38.980 --> 01:56:43.300
Nope, no unintended to
the winding Creek decision.

01:56:43.300 --> 01:56:46.780
But so I thank you very much.

01:56:46.780 --> 01:56:50.720
Commissioner Rick
Shovin and Cheryl and team.

01:56:50.720 --> 01:56:53.477
So I don't have any further comments.

01:56:53.477 --> 01:56:57.035
Other than the understanding
how difficult this was.

01:56:57.035 --> 01:57:00.570
Any other comments or thoughts?

01:57:00.570 --> 01:57:01.403
I'm seven.

01:57:02.940 --> 01:57:04.410
<v ->I'll just echo everything.</v>

01:57:04.410 --> 01:57:08.370
Everybody said, including
the, the point about a lot

01:57:08.370 --> 01:57:12.270
of staff time per megawatt,
challenging issue.

01:57:12.270 --> 01:57:14.170
It's a ton of work.

01:57:14.170 --> 01:57:17.603
So thank you everyone
for, the heavy lift.

01:57:18.955 --> 01:57:20.430
<v ->And that was a
very clever comment.</v>

01:57:20.430 --> 01:57:21.480
I'm going to remember that.

01:57:21.480 --> 01:57:23.240
Well Martha, I think that we can apply

01:57:23.240 --> 01:57:25.350
it in other areas as well.

01:57:25.350 --> 01:57:30.350
Well said, well said, okay, we'll see.

01:57:30.910 --> 01:57:33.606
No other comments or discussion.

01:57:33.606 --> 01:57:36.370
Will the gender clerk please call

01:57:37.241 --> 01:57:39.180
the roll on item number seven.

01:57:39.180 --> 01:57:40.330
<v ->Commissioner Shiroma.</v>

01:57:41.220 --> 01:57:42.570
<v ->Aye.</v>

01:57:42.570 --> 01:57:44.486
<v ->Commissioner Guzman Aceves.</v>

01:57:44.486 --> 01:57:45.847
<v ->Aye.</v>

01:57:45.847 --> 01:57:47.073
<v ->Commissioner Randolph.</v>

01:57:47.073 --> 01:57:48.930
<v ->Yes.</v>

01:57:48.930 --> 01:57:50.560
<v ->Commissioner Rechtschaffen.</v>

01:57:51.500 --> 01:57:52.333
<v ->Yes.</v>

01:57:52.333 --> 01:57:53.400
<v ->President Batjer.</v>

01:57:53.400 --> 01:57:54.810
<v ->Yes. Thank you.</v>

01:57:54.810 --> 01:57:56.760
Item seven is passed unanimously

01:57:56.760 --> 01:57:59.590
moving on now to item number eight.

01:57:59.590 --> 01:58:01.580
And this is an item

01:58:01.580 --> 01:58:04.840
from the energy
division director Randolph

01:58:04.840 --> 01:58:06.986
but today it will be presented

01:58:06.986 --> 01:58:10.420
by Dorothy Duda from
the energy division.

01:58:10.420 --> 01:58:11.783
Dorothy, are you online?

01:58:13.770 --> 01:58:14.740
<v ->Yes, I am.</v>

01:58:14.740 --> 01:58:16.042
Can you hear me?

01:58:16.042 --> 01:58:17.753
<v ->We can hear you.</v>

01:58:19.080 --> 01:58:22.879
Okay. I have some slides on
this that they can be brought up

01:58:22.879 --> 01:58:27.879
right, I am presenting
to you resolution E5059

01:58:34.223 --> 01:58:35.242
which is implementation of reentry fees

01:58:35.242 --> 01:58:36.075
and financial security requirements

01:58:36.075 --> 01:58:38.826
for our community choice
aggregators in California.

01:58:38.826 --> 01:58:42.240
And again Dorothy due
to manager of the market

01:58:42.240 --> 01:58:45.049
structure costs and natural gas branch.

01:58:45.049 --> 01:58:48.043
I think we can move to the next slide.

01:58:51.625 --> 01:58:55.740
Okay. By way of a little
background, two years ago

01:58:55.740 --> 01:59:00.450
decision 1805022
establish the requirements

01:59:00.450 --> 01:59:04.070
for these re-entry fees and
financial security requirements

01:59:04.070 --> 01:59:06.600
that CCA will need to pay

01:59:06.600 --> 01:59:09.820
in the event of an involuntary return

01:59:09.820 --> 01:59:12.560
of CCA customers to utility service.

01:59:12.560 --> 01:59:14.210
We haven't seen this yet

01:59:14.210 --> 01:59:17.361
but they just didn't
decision established

01:59:17.361 --> 01:59:21.450
the fee structure and the requirements

01:59:21.450 --> 01:59:26.220
for PCA's to post financial
security requirements

01:59:26.220 --> 01:59:29.620
which include letters of credit,

01:59:29.620 --> 01:59:34.136
surety bonds, or cash
in escrow accounts.

01:59:34.136 --> 01:59:39.136
Now this resolution
addresses the utilities advice

01:59:39.350 --> 01:59:41.500
letters that were filed to implement

01:59:41.500 --> 01:59:43.920
the decision of the decision.

01:59:43.920 --> 01:59:47.320
And it was a very long road

01:59:47.320 --> 01:59:49.746
of, there were many disputed issues

01:59:49.746 --> 01:59:53.470
and staff took a long
time to thoroughly review

01:59:53.470 --> 01:59:56.060
and dispose of all of these disputes.

01:59:56.060 --> 01:59:59.306
As you can see, it's
a fairly long resolution.

01:59:59.306 --> 02:00:03.060
We have had interim
financial security requirements

02:00:03.060 --> 02:00:06.283
and bond in place in the meantime.

02:00:08.470 --> 02:00:10.743
Let me move to the next slide please.

02:00:14.270 --> 02:00:17.960
All right, the significant
contested issues

02:00:17.960 --> 02:00:20.791
as I mentioned that
staff had to grapple with,

02:00:20.791 --> 02:00:23.770
were mainly in two categories.

02:00:23.770 --> 02:00:28.560
The first was the DCA
customer costs responsibility

02:00:28.560 --> 02:00:33.560
in the event of an involuntary
return, there was no dispute

02:00:34.350 --> 02:00:37.648
that the CCA itself
must pay reentry fees

02:00:37.648 --> 02:00:42.648
but what is the CCA
wasn't able to pay them?

02:00:43.160 --> 02:00:48.110
The resolution States that
DCA customers bear costs

02:00:48.110 --> 02:00:51.960
for any fees, the PUC
deemed necessary in the event

02:00:51.960 --> 02:00:53.970
of an involuntary return.

02:00:53.970 --> 02:00:57.820
And this is the same
as the approach adopted

02:00:57.820 --> 02:01:00.980
for direct access
customers, which complies

02:01:00.980 --> 02:01:05.980
with the guidance that
the decision 1805022

02:01:06.366 --> 02:01:09.020
stated about how to
handle this involuntary return

02:01:09.020 --> 02:01:09.853
and these fees.

02:01:10.822 --> 02:01:13.180
So that's the first issue.

02:01:13.180 --> 02:01:15.840
The first bullet there and the bullet,

02:01:15.840 --> 02:01:20.440
the second significant
issue was disputes

02:01:20.440 --> 02:01:23.350
over when the financial
security instrument could

02:01:23.350 --> 02:01:26.810
be activated or drawn
upon by the utility

02:01:26.810 --> 02:01:30.927
and the utilities and the CPAs disagreed

02:01:30.927 --> 02:01:33.430
on the tariff language here

02:01:33.430 --> 02:01:36.480
on the conditions that
would allow the utility

02:01:36.480 --> 02:01:38.133
to draw on the instrument.

02:01:39.840 --> 02:01:43.530
The resolution states
that the financial security

02:01:43.530 --> 02:01:48.530
instrument will be activated
only for an involuntary return

02:01:48.640 --> 02:01:51.590
or as specified in the instrument itself

02:01:51.590 --> 02:01:54.553
which is mutually agreed
upon by the parties.

02:01:57.960 --> 02:02:00.880
Let's move to the last two slides

02:02:00.880 --> 02:02:02.393
or the next slide, slide four.

02:02:04.960 --> 02:02:09.120
Okay, my last two slides,
I will not read in detail

02:02:09.120 --> 02:02:12.160
but I just want to point
out that these slides lay

02:02:12.160 --> 02:02:15.340
out the involuntary return process

02:02:15.340 --> 02:02:19.890
that is specified in the resolution.

02:02:19.890 --> 02:02:22.823
When the, when it involuntary return

02:02:22.823 --> 02:02:27.823
it can occur the advice letter filing

02:02:28.250 --> 02:02:29.850
that the utility should make

02:02:29.850 --> 02:02:34.350
with the calculation of the fees we,

02:02:34.350 --> 02:02:37.806
I described here, how the
advisor can be protested

02:02:37.806 --> 02:02:42.360
but the utility can still
draw upon the financial

02:02:42.360 --> 02:02:45.813
security instrument even
in the event of a protest.

02:02:47.060 --> 02:02:49.490
And then next slide please. Thank you.

02:02:53.655 --> 02:02:57.247
Here I just provide
some further clarification

02:02:57.247 --> 02:03:01.010
on the process and what
happens if there are disputes

02:03:01.010 --> 02:03:05.090
about the reentry fees,
we allow a memo account

02:03:05.090 --> 02:03:08.027
for the utility to track disputed costs.

02:03:08.027 --> 02:03:12.210
And we lay out that a future provider

02:03:12.210 --> 02:03:17.210
of last resort proceeding is
being drafted at this moment.

02:03:18.050 --> 02:03:21.390
And so we envision any
dispute can be handled

02:03:21.390 --> 02:03:24.813
in that proceeding or a successor
proceeding as necessary.

02:03:26.630 --> 02:03:30.550
I just want to thank Dina
Makin and Travis Blackout

02:03:30.550 --> 02:03:34.273
from my staff for the adulterant
work on this resolution.

02:03:36.440 --> 02:03:39.223
And I'll pause there for questions.

02:03:39.223 --> 02:03:44.223
<v ->Okay Darcy. Thank you very
much, questions Commissioners.</v>

02:03:47.500 --> 02:03:51.016
I don't see any questions
so well done Dorothy.

02:03:51.016 --> 02:03:51.849
<v ->Great.</v>

02:03:53.567 --> 02:03:58.567
<v ->Are there any
questions of, well,</v>

02:03:59.267 --> 02:04:03.543
it's not a resolution sorry,
anyway, any other comments

02:04:03.543 --> 02:04:05.623
as opposed to questions?

02:04:06.465 --> 02:04:07.833
<v ->Yeah, let's make a brief.</v>

02:04:08.747 --> 02:04:10.343
(indistinct)

02:04:10.343 --> 02:04:11.347
<v ->Yes. Thank you,
president Betcha.</v>

02:04:11.347 --> 02:04:14.135
I just in recognition
of all the elements

02:04:14.135 --> 02:04:16.422
of conversation and compromise

02:04:16.422 --> 02:04:21.422
and finding middle ground as
we continue to have a growth

02:04:22.396 --> 02:04:26.388
in load serving entities,
particularly the CCAs

02:04:26.388 --> 02:04:30.300
and their tremendous role in
our future and the importance

02:04:30.300 --> 02:04:32.547
of all these little details,
getting figured out

02:04:32.547 --> 02:04:35.730
we focus a lot on the discussions

02:04:35.730 --> 02:04:39.110
that will most be having on PCIA.

02:04:39.110 --> 02:04:42.207
And we heard this morning
a little bit of that also,

02:04:42.207 --> 02:04:45.470
and just the amount of collaboration

02:04:45.470 --> 02:04:48.590
and constant dialogue that is needed

02:04:48.590 --> 02:04:50.820
and will continue to be needed.

02:04:50.820 --> 02:04:53.640
And so just thank Dorothy and her team

02:04:53.640 --> 02:04:57.240
for that, and for kind
of the new reality of

02:04:57.240 --> 02:04:59.270
how we're doing procurement

02:04:59.270 --> 02:05:02.566
and doing our relationship
with all of our customers.

02:05:02.566 --> 02:05:03.733
Thank you.

02:05:04.830 --> 02:05:06.048
<v ->Thank you Commissioner.</v>

02:05:06.048 --> 02:05:07.703
Any other comments or thoughts?

02:05:09.900 --> 02:05:10.850
<v ->Yes Commissioner.</v>

02:05:11.860 --> 02:05:12.693
<v ->Yeah.</v>

02:05:14.090 --> 02:05:15.545
<v ->Okay. Thank you.</v>

02:05:15.545 --> 02:05:20.545
Just a once again thank
you for the various little work

02:05:20.720 --> 02:05:24.450
and in a case to be interviewed division

02:05:24.450 --> 02:05:26.648
through this resolution.

02:05:26.648 --> 02:05:31.648
I appreciate that it
works to clarify, amplify

02:05:32.880 --> 02:05:36.344
and carry forward a
state law that does require

02:05:36.344 --> 02:05:41.200
like TCAs and our customers
cover the cost associated

02:05:41.200 --> 02:05:44.417
with reentering on the service.

02:05:44.417 --> 02:05:49.405
And this is all geared towards
the trend towards equity

02:05:49.405 --> 02:05:54.405
and I support, you know
staunchly a community's right to

02:05:54.630 --> 02:05:57.845
choose it's its energy procure.

02:05:57.845 --> 02:06:01.760
And in doing that to prevent
that cross subsidization

02:06:04.525 --> 02:06:08.608
between bundled and
unbundled customers is important

02:06:08.608 --> 02:06:12.470
within that legal and
regulatory framework

02:06:12.470 --> 02:06:17.470
for successful utilities
and successful PCA's.

02:06:17.600 --> 02:06:19.857
So I support the resolution. Thank you.

02:06:21.691 --> 02:06:24.893
<v ->Thank you Commissioner
Shiroma, any other comments?</v>

02:06:25.980 --> 02:06:27.970
<v ->Okay. Seeing none, I will,</v>

02:06:27.970 --> 02:06:31.323
the agenda clerk, please
call the roll on item eight.

02:06:32.944 --> 02:06:35.030
<v ->Commisioner Shiroma.</v>

02:06:35.030 --> 02:06:36.390
<v ->Aye.</v>

02:06:36.390 --> 02:06:38.248
<v ->Commissioner Guzman Aceves.</v>

02:06:38.248 --> 02:06:39.462
<v ->Aye.</v>

02:06:39.462 --> 02:06:41.644
<v ->Commissioner Randolph.</v>

02:06:41.644 --> 02:06:42.477
<v ->Yes.</v>

02:06:43.908 --> 02:06:45.807
<v ->Commissioner Rechtschaffen.</v>

02:06:45.807 --> 02:06:47.246
<v ->Yes.</v>

02:06:47.246 --> 02:06:48.650
<v ->Batjer.</v>

02:06:48.650 --> 02:06:49.900
<v ->Yes. Thank you.</v>

02:06:49.900 --> 02:06:52.430
Item eight is passed unanimously again.

02:06:52.430 --> 02:06:56.110
Dorothy, my thanks to you
and the hardworking staff.

02:06:56.110 --> 02:06:57.233
Appreciate it greatly.

02:06:59.470 --> 02:07:03.250
Moving Now on to item number nine,

02:07:03.250 --> 02:07:05.350
which is Commissioner Sharoma.

02:07:10.950 --> 02:07:12.073
I think you're muted.

02:07:14.025 --> 02:07:14.925
<v ->Okay. Thank you.</v>

02:07:15.905 --> 02:07:16.738
I think I unmuted.

02:07:16.738 --> 02:07:18.007
<v ->Okay.</v>

02:07:18.007 --> 02:07:18.900
<v ->Here we go. Thank you to all.</v>

02:07:18.900 --> 02:07:21.322
Thank you, President Batjer.

02:07:21.322 --> 02:07:26.322
This is proposal to approve
the proposed decision

02:07:27.810 --> 02:07:32.410
on the R 20-2S08 to support the amount

02:07:34.310 --> 02:07:37.564
minimum service standard
for the California lifeline

02:07:37.564 --> 02:07:39.610
and replacement of federal support for

02:07:39.610 --> 02:07:41.880
wildlife participants program.

02:07:41.880 --> 02:07:44.520
Okay, so this program,

02:07:44.520 --> 02:07:46.970
once I'm programming
has been in place since 1983

02:07:47.990 --> 02:07:52.990
and the federal lifeline
program was enact

02:07:53.907 --> 02:07:57.350
a year later implemented it in 1985.

02:07:57.350 --> 02:08:01.340
So I like to think that the
federal program was inspired

02:08:01.340 --> 02:08:03.466
by what was going on in California.

02:08:03.466 --> 02:08:06.480
And the federal program
does provide subsidies

02:08:06.480 --> 02:08:09.320
for wireless and wireline.

02:08:09.320 --> 02:08:13.990
And again, we have
audible Gwen Moore to thank

02:08:13.990 --> 02:08:17.746
for this landmark act in California.

02:08:17.746 --> 02:08:20.567
We unfortunate watch her this year.

02:08:20.567 --> 02:08:25.567
She provided the foundation
for the quality of service

02:08:25.908 --> 02:08:27.850
for the lifeline program

02:08:27.850 --> 02:08:30.520
and the proposals that are outlined

02:08:30.520 --> 02:08:32.540
in this proposed decision you know,

02:08:32.540 --> 02:08:36.490
hopes to do justice by her vision.

02:08:36.490 --> 02:08:39.370
The highlight I'd like to make

02:08:39.370 --> 02:08:40.670
about the proposed decision is

02:08:40.670 --> 02:08:43.271
that for the first time it
brings broadband service

02:08:43.271 --> 02:08:47.280
into the program especially important

02:08:47.280 --> 02:08:49.820
during this COVID-19 pandemic

02:08:49.820 --> 02:08:54.820
which has emphasized the
importance of broadband access

02:08:54.900 --> 02:08:59.480
for all as California's
need to have support

02:08:59.480 --> 02:09:03.090
for distance learning for tele-health

02:09:03.090 --> 02:09:04.323
and working from home.

02:09:05.347 --> 02:09:10.347
And I think the PD
accomplishes this objective

02:09:10.368 --> 02:09:13.320
by adjusting our lifelines program

02:09:13.320 --> 02:09:17.030
for the specific supportive mounts.

02:09:17.030 --> 02:09:18.710
The minimum service standards

02:09:18.710 --> 02:09:21.647
these amounts of standards were arrived

02:09:21.647 --> 02:09:25.130
after a robust analysis was performed

02:09:25.130 --> 02:09:27.884
by our communications division staff

02:09:27.884 --> 02:09:30.753
and our assigned
Administrative Law Judge,

02:09:31.801 --> 02:09:35.300
judge Wong, who really
put through all of the data,

02:09:35.300 --> 02:09:37.849
all of the information,
all of the comments

02:09:37.849 --> 02:09:41.529
and all of this in concert
with our budget limitations

02:09:41.529 --> 02:09:45.350
and all without proposing an increase

02:09:45.350 --> 02:09:47.640
in the current surcharge.

02:09:47.640 --> 02:09:49.810
So first for the wireless service

02:09:49.810 --> 02:09:53.360
with blog ban in the
community conditions

02:09:53.360 --> 02:09:56.370
affordability of utility
service decisions

02:09:56.370 --> 02:09:59.890
that we voted out in July, we adopted

02:09:59.890 --> 02:10:01.920
in a central level of broadband service

02:10:01.920 --> 02:10:05.930
and concluded that the more
act among other stand sheets

02:10:05.930 --> 02:10:09.460
demonstrates that the
condition has a role in closing

02:10:09.460 --> 02:10:12.380
the digital divide in California

02:10:12.380 --> 02:10:15.210
and bringing advanced
communication services

02:10:15.210 --> 02:10:19.045
including broadband internet
services to all California.

02:10:19.045 --> 02:10:22.750
This program must
support affordable choices

02:10:22.750 --> 02:10:24.730
where California is across the state

02:10:24.730 --> 02:10:28.060
including rural and urban
California households

02:10:28.060 --> 02:10:31.928
and individuals who need
no cost wireless services.

02:10:31.928 --> 02:10:34.240
And of course for
the struggling families

02:10:34.240 --> 02:10:36.830
who need mobile family plans

02:10:36.830 --> 02:10:40.690
or fixed voice or broadband
services, Governor news

02:10:40.690 --> 02:10:43.640
I'm also highlighted this
need for broader and services

02:10:43.640 --> 02:10:47.560
with executive order,
somebody 320 on broadband

02:10:47.560 --> 02:10:50.487
for all to bridge the
digital divide in our state.

02:10:50.487 --> 02:10:51.820
And the Commission followed

02:10:51.820 --> 02:10:54.185
up on these efforts
recently when we opened

02:10:54.185 --> 02:10:58.530
like everyone making 2009 001

02:10:58.530 --> 02:11:02.120
to excellent celebrate the
deployment of an access

02:11:02.120 --> 02:11:04.827
to quality affordable
internet for all California.

02:11:04.827 --> 02:11:06.390
And that effort is being led

02:11:06.390 --> 02:11:08.980
by Commissioner Rechtschaffen.

02:11:08.980 --> 02:11:11.964
Now to address this need
within our lifeline program,

02:11:11.964 --> 02:11:15.340
our Commission staff
issued data requests

02:11:15.340 --> 02:11:18.760
to industry service
providers to obtain information

02:11:18.760 --> 02:11:22.454
on the wireless service is
provided on a nationwide basis

02:11:22.454 --> 02:11:27.454
in order to estimate
participants wireless data needs.

02:11:27.460 --> 02:11:28.970
And based on the data received

02:11:28.970 --> 02:11:32.320
our staff generated a
strong proposal that relied

02:11:32.320 --> 02:11:34.129
on a general market offerings

02:11:34.129 --> 02:11:37.670
that while addressing consumer needs.

02:11:37.670 --> 02:11:39.800
So we really approached this effort

02:11:39.800 --> 02:11:44.617
that there be a equivalency

02:11:46.370 --> 02:11:49.140
in the kinds of art options
for the low income customers

02:11:49.140 --> 02:11:54.140
because after all in energy,
everyone gets the same energy.

02:11:55.220 --> 02:11:57.830
There is a discount for that energy,

02:11:57.830 --> 02:12:00.803
but it is the same quality of energy.

02:12:00.803 --> 02:12:05.803
So the comments on the short
proposal then provided it does

02:12:06.470 --> 02:12:08.790
with input on data needs by participants

02:12:08.790 --> 02:12:11.400
and allowed us to put together a

02:12:11.400 --> 02:12:14.530
voluntary broadband option
that our service providers

02:12:14.530 --> 02:12:16.540
that new things can meet.

02:12:16.540 --> 02:12:19.720
We also put together
a completely free option

02:12:19.720 --> 02:12:22.800
for consumers with modest data cap

02:12:22.800 --> 02:12:26.050
and a subsidized plans that match

02:12:26.050 --> 02:12:29.143
current customer data usage,

02:12:29.143 --> 02:12:32.220
more specifically great
this proposed decisions

02:12:32.220 --> 02:12:35.348
that supports the
wireless lifeline tears

02:12:35.348 --> 02:12:37.600
by specifying a basic

02:12:37.600 --> 02:12:41.211
and standard plan available
to participants at no cost

02:12:41.211 --> 02:12:44.440
while offering a mobile
broadband allowance

02:12:44.440 --> 02:12:47.640
of four games in six gigs respectively,

02:12:47.640 --> 02:12:51.380
the PD also proposes
a flexible upgrade plan

02:12:51.380 --> 02:12:55.660
or family plan that includes
at least 12 gigabytes

02:12:55.660 --> 02:12:57.560
of mobile data that incorporates

02:12:57.560 --> 02:13:00.380
the Commissioner review
process for affordability.

02:13:00.380 --> 02:13:03.140
If some of this proposed
decision provides it

02:13:03.140 --> 02:13:05.668
for these voluntary service options

02:13:05.668 --> 02:13:08.146
for wireless participanst
after an methodical

02:13:08.146 --> 02:13:13.146
and thorough analysis of the
data need to call consumers.

02:13:13.185 --> 02:13:15.623
Now for the wireline service.

02:13:15.623 --> 02:13:20.623
In addition to addressing
wireless with this proposal

02:13:20.766 --> 02:13:23.920
that's lifeline service
and subsidy levels

02:13:23.920 --> 02:13:27.090
for the wireline service
for bundled service plans.

02:13:27.090 --> 02:13:28.110
That includes voice

02:13:29.369 --> 02:13:32.551
and broadband service as
the FCC to reduce subsidies

02:13:32.551 --> 02:13:36.220
for voice only plans on an annual basis.

02:13:36.220 --> 02:13:39.321
So that's our proposal sets
a California subsidy level

02:13:39.321 --> 02:13:41.630
for voice over internet protocol

02:13:41.630 --> 02:13:46.630
or VoIP services bundled
with fixed plug in services.

02:13:46.770 --> 02:13:49.280
As long as it's a VoIP service connects

02:13:49.280 --> 02:13:51.610
to the public switch telephone network

02:13:51.610 --> 02:13:54.203
and meet emergency 911 obligation

02:13:54.203 --> 02:13:56.171
to address safety concerns.

02:13:56.171 --> 02:13:58.220
This proposal also comes

02:13:58.220 --> 02:14:01.490
after a review of service provider data

02:14:01.490 --> 02:14:05.227
and party comments to
our staff through a proposal.

02:14:05.227 --> 02:14:10.227
Now to the wireline
measuring VoIP service.

02:14:10.290 --> 02:14:13.250
In addition to the site
just described the wireless

02:14:13.250 --> 02:14:16.113
and wireline service proposal.

02:14:17.050 --> 02:14:18.880
We also focus on changes

02:14:18.880 --> 02:14:23.523
to an outdated element of
the lifeline program known

02:14:23.523 --> 02:14:26.750
as wireline measured a great service.

02:14:26.750 --> 02:14:29.760
It dates back to 1980s when terrorists

02:14:29.760 --> 02:14:34.300
for local long distance
international calls varied

02:14:34.300 --> 02:14:37.050
and flat rate service was less common.

02:14:37.050 --> 02:14:40.330
Today is flat rate service is standard.

02:14:40.330 --> 02:14:42.447
However, approximately 13%

02:14:42.447 --> 02:14:44.770
of the California lifeline wireline

02:14:44.770 --> 02:14:49.070
participants continue to
receive measured rate service

02:14:49.070 --> 02:14:52.040
in 2019 by their providers.

02:14:52.040 --> 02:14:55.864
Most program providers only
offer measured rates service

02:14:55.864 --> 02:14:59.110
for legacy participants.

02:14:59.110 --> 02:15:02.490
So our Commission staff
raises issue in the shot proposal

02:15:02.490 --> 02:15:05.680
by presenting the opportunity
to save the program

02:15:05.680 --> 02:15:09.060
and estimated $9.2 million per year.

02:15:09.060 --> 02:15:12.030
I no longer offering the higher subsidue

02:15:12.030 --> 02:15:14.010
for measured rate service.

02:15:14.010 --> 02:15:18.563
In 2019 lifeline program
provided an average of $36.65

02:15:20.367 --> 02:15:23.790
in subsidies rate customer compared

02:15:23.790 --> 02:15:28.790
with the $14 and 95, a
dumpy for flat rate customers.

02:15:28.800 --> 02:15:33.090
And again, it was measured rate programs

02:15:33.090 --> 02:15:38.090
our legacy programs that are out of date

02:15:38.550 --> 02:15:43.550
and one provider in fact was
being given $114 per customer.

02:15:45.827 --> 02:15:46.943
The more act requires

02:15:46.943 --> 02:15:48.580
that the Commission
implement the program

02:15:48.580 --> 02:15:52.027
in a way that is equitable
non-discriminatory

02:15:52.027 --> 02:15:54.080
and without competitive consequences

02:15:54.080 --> 02:15:57.106
for the telecommunications
industry in California

02:15:57.106 --> 02:16:01.269
the straw proposal found
that the currents on levels

02:16:01.269 --> 02:16:06.267
for those legacy measured
rates violate this requirement

02:16:06.267 --> 02:16:09.889
and provide a competitive advantage

02:16:09.889 --> 02:16:14.840
that is not allowed by this program.

02:16:14.840 --> 02:16:19.080
Accordingly, we propose that
the program should eliminate

02:16:19.080 --> 02:16:21.900
subsidies for those measures of AIDS.

02:16:21.900 --> 02:16:25.980
However, we do recognize
that it may not be feasible

02:16:25.980 --> 02:16:30.210
to, for all of the
wireline providers too.

02:16:30.210 --> 02:16:33.945
I got noticed and transition on day one.

02:16:33.945 --> 02:16:38.420
So we are proposing December 1st, 2020

02:16:39.431 --> 02:16:41.390
and you do need to protect participants

02:16:41.390 --> 02:16:44.120
during this proposed transition.

02:16:44.120 --> 02:16:46.270
So in light of that is proposed

02:16:46.270 --> 02:16:49.750
in the PV setting up a transition period

02:16:49.750 --> 02:16:52.260
with advanced notice for all customers

02:16:52.260 --> 02:16:56.117
and a bill credit for conversion
from the measured rate

02:16:56.117 --> 02:16:59.080
two to flat rate, to
minimize disruptions

02:17:00.044 --> 02:17:02.570
in service or convert a conversion piece

02:17:02.570 --> 02:17:04.880
and also to protect the customers.

02:17:04.880 --> 02:17:08.310
And then lastly, you know,
the federal lifeline support

02:17:08.310 --> 02:17:13.310
has been then reduced will recall

02:17:13.890 --> 02:17:16.650
that the FCC reduces subsidy by $2

02:17:17.830 --> 02:17:20.650
for service plans that did not meet

02:17:20.650 --> 02:17:22.333
its broadband service standards.

02:17:26.788 --> 02:17:27.621
And that was last year

02:17:29.841 --> 02:17:32.906
and it is poised to reduce it
again by another $2 in 2021,

02:17:32.906 --> 02:17:36.500
bringing the current
somebody that'll cost me $7

02:17:37.544 --> 02:17:40.789
between $5.25 and 25 cents.

02:17:40.789 --> 02:17:43.490
We previously found

02:17:43.490 --> 02:17:48.020
that the wireline providers
would raise their rates

02:17:48.020 --> 02:17:49.230
for voice services.

02:17:49.230 --> 02:17:52.200
If we did not place the federal support.

02:17:52.200 --> 02:17:54.760
And we noted that waterline which is,

02:17:54.760 --> 02:17:56.890
would not be able to
avoid these rate increase.

02:17:56.890 --> 02:18:00.930
So we concluded that
replacing that little support

02:18:00.930 --> 02:18:04.920
for wireline participants
without the placing of the small

02:18:04.920 --> 02:18:09.437
for wireless, for purchasing
would not violate the more that

02:18:10.523 --> 02:18:15.523
in other words, the providers
for wireline needed some help.

02:18:15.820 --> 02:18:18.550
The wireless did not.

02:18:18.550 --> 02:18:20.090
Again, we're talking about last year.

02:18:20.090 --> 02:18:25.090
So we did a fill in the
gap for that initial $2.

02:18:25.650 --> 02:18:30.570
Now we all committed to looking at well

02:18:30.570 --> 02:18:35.570
what happens as the federal
subsidies continue to decline?

02:18:35.650 --> 02:18:39.920
So in assessing that our shrimp
proposal included estimates

02:18:39.920 --> 02:18:43.330
of the cost of program
of replacing the $2

02:18:43.330 --> 02:18:47.870
or $4 at the federal
lifeline subsidy reduction.

02:18:47.870 --> 02:18:50.810
And we reviewed the
party comments arguing

02:18:50.810 --> 02:18:53.979
against the level of companies
provided by the program.

02:18:53.979 --> 02:18:58.550
And before addressing
the surcharge issue,

02:18:58.550 --> 02:19:01.150
a consumer advocate parties noted

02:19:01.150 --> 02:19:04.010
that the pendant recession
conditions warranted

02:19:05.240 --> 02:19:07.700
in limited extension of
this supplemental copy

02:19:07.700 --> 02:19:11.060
but that this approach should
be reviewed again next year

02:19:11.060 --> 02:19:13.030
and one that economic conditions

02:19:13.030 --> 02:19:16.438
and longer term impact
on the program budget.

02:19:16.438 --> 02:19:19.135
So we agree with this assessment

02:19:19.135 --> 02:19:22.880
we'll continue to replace the $2

02:19:23.740 --> 02:19:26.400
but not the whole core dollars

02:19:26.400 --> 02:19:29.557
for wireline participants
or end of the year.

02:19:29.557 --> 02:19:34.557
We will revisit this issue when
considering the soapy level

02:19:35.120 --> 02:19:38.470
for next year, we anticipate

02:19:38.470 --> 02:19:40.890
that providers will still be able to

02:19:40.890 --> 02:19:43.675
offer the lifeline program,

02:19:43.675 --> 02:19:48.221
affordable options outlined in this PV.

02:19:48.221 --> 02:19:52.200
So in conclusion, I would
like to thank our lifeline team

02:19:52.200 --> 02:19:54.820
on this effort to bring broadband

02:19:54.820 --> 02:19:58.501
into the program, modernizing
our California lifeline.

02:19:58.501 --> 02:20:03.501
And we are also updating the
measure grade versus flat rate.

02:20:06.520 --> 02:20:10.239
We you're addressing
the federal subsidies.

02:20:10.239 --> 02:20:14.041
And I would like to thank our

02:20:14.041 --> 02:20:18.038
communications division
lifeline team that worked

02:20:18.038 --> 02:20:22.000
on this PD, including
Jonathan Lackritz, Cheryl Atari

02:20:22.000 --> 02:20:27.000
Wurster Joanna Green,
Robert Samson, Caitlin Jones

02:20:27.370 --> 02:20:31.293
and Tina Lee, as well
as our legal support to me.

02:20:32.460 --> 02:20:36.490
And again, a big shout out

02:20:36.490 --> 02:20:39.970
to our Administrative Law
Judge, Stephanie Wong.

02:20:39.970 --> 02:20:44.970
We just did in my view, some
incredible work in navigating

02:20:45.200 --> 02:20:48.440
through the complexities of the program.

02:20:48.440 --> 02:20:52.000
And I want to acknowledge
and thank my bag

02:20:52.000 --> 02:20:56.100
of keen partner, fellow
Commissioner Rechtschaffen

02:20:56.100 --> 02:20:59.400
for your assistance in
bringing forth this proposal

02:20:59.400 --> 02:21:01.794
and your team share a
shrub, Stephanie Crespin.

02:21:01.794 --> 02:21:03.431
And then my advisor advisory turned Shia

02:21:03.431 --> 02:21:05.160
and my chief of staff.

02:21:05.160 --> 02:21:07.160
We want him to testify.

02:21:07.160 --> 02:21:09.023
So all of the words to bring this

02:21:09.023 --> 02:21:11.230
I proposed these additions to forward

02:21:11.230 --> 02:21:15.419
for a goat and to do
it timely as we are still

02:21:15.419 --> 02:21:20.419
in the midst of this
horrendous, COVID pandemic.

02:21:21.510 --> 02:21:23.952
So it's that I respectfully ask for your

02:21:23.952 --> 02:21:26.152
I vote on this proposed
decision, thank you.

02:21:28.570 --> 02:21:30.870
<v ->Thank you very much,
Commissioner Shiroma.</v>

02:21:30.870 --> 02:21:32.972
Thank you for all of your hard work

02:21:32.972 --> 02:21:36.371
either extremely important reforms

02:21:36.371 --> 02:21:41.371
and modernizing a bit of the program.

02:21:41.870 --> 02:21:43.650
So I, I do appreciate it.

02:21:43.650 --> 02:21:45.534
I look forward to the day

02:21:45.534 --> 02:21:49.210
when we can offer a
standalone high-capacity

02:21:49.210 --> 02:21:51.210
broadband service within lifeline

02:21:51.210 --> 02:21:54.195
but these are important
reforms that are being made.

02:21:54.195 --> 02:21:58.580
Appreciate them greatly as always.

02:21:58.580 --> 02:21:59.853
I wish we could do more,

02:22:01.748 --> 02:22:04.115
but I don't appreciate
the the backfilling

02:22:04.115 --> 02:22:07.656
that you're having to do
because of the FCC cuts.

02:22:07.656 --> 02:22:10.370
So thank you very much
for all the hard work, both you

02:22:10.370 --> 02:22:12.890
and Commissioner Guzman Aceves.

02:22:12.890 --> 02:22:14.770
'Cause I know this has
been a lot of hard work

02:22:14.770 --> 02:22:18.810
and a lot of good thinking
and appreciate it greatly.

02:22:18.810 --> 02:22:21.223
Are there any other
comments on item nine?

02:22:22.960 --> 02:22:25.200
<v ->Yes, Commissioner
Guzmzn Aceves.</v>

02:22:26.440 --> 02:22:30.060
<v ->Briefly I want to
underscore my thanks to you</v>

02:22:30.060 --> 02:22:32.410
Commissioner Shiroma and
Commissioner Guzman Aceves

02:22:32.410 --> 02:22:37.160
and this is a really important
path breaking decision.

02:22:37.160 --> 02:22:39.130
You stated it very well, right

02:22:39.130 --> 02:22:42.250
at the start Californians need high

02:22:42.250 --> 02:22:45.490
quality broadband services
now more than ever,

02:22:45.490 --> 02:22:47.531
especially in might've COVID

02:22:47.531 --> 02:22:52.135
And the pervasive digital divide
that we've seen with COVID.

02:22:52.135 --> 02:22:56.691
And it's really historic that
the idea that we are leaking

02:22:56.691 --> 02:22:58.730
we have cured subsidy rates

02:22:58.730 --> 02:23:00.908
and we're linking
minimum service standards

02:23:00.908 --> 02:23:05.250
to those rates to really, really,

02:23:05.250 --> 02:23:09.040
important decision will go a
long way to help them ensure

02:23:09.040 --> 02:23:12.840
that the customers on the
lifeline program received

02:23:12.840 --> 02:23:15.800
the higher quality
service that they deserve

02:23:15.800 --> 02:23:18.169
and that they need in today's economy.

02:23:18.169 --> 02:23:20.843
So thank you very, very
much for your work on this.

02:23:29.330 --> 02:23:31.890
<v ->I didn't realize
I muted. Sorry.</v>

02:23:31.890 --> 02:23:33.692
<v ->Thank you Commissioner
Rechtschaffen</v>

02:23:33.692 --> 02:23:36.130
and Commissioner Guzman Aceves.

02:23:36.130 --> 02:23:38.470
<v ->Thank you President Batjer.</v>

02:23:38.470 --> 02:23:41.030
I want to really think
Commissioner Shiroma,

02:23:41.030 --> 02:23:45.890
I think that I have done
no work on this really.

02:23:45.890 --> 02:23:50.080
I've been able to share
some thoughts and ideas

02:23:50.080 --> 02:23:53.260
and it's been such a
privilege to have her consider

02:23:53.260 --> 02:23:55.820
so many of them, as you guys know

02:23:55.820 --> 02:23:59.388
I often have many
ideas that are a stretch

02:23:59.388 --> 02:24:04.388
but this is such a big stride
in the program just yesterday.

02:24:04.500 --> 02:24:06.894
In fact, Commissioner
Shiroma corrected one

02:24:06.894 --> 02:24:11.350
of our very renowned
thought leaders flare 11th

02:24:11.350 --> 02:24:14.420
where she said well,
he was basically saying,

02:24:14.420 --> 02:24:18.074
we need more out of
the ISP affordable plan

02:24:18.074 --> 02:24:21.210
because lifeline isn't doing it.

02:24:21.210 --> 02:24:24.610
And she said, well, well,
well, well we're going to do it.

02:24:24.610 --> 02:24:29.120
So she very politely
corrected in that in California.

02:24:29.120 --> 02:24:31.460
We're gonna lead this transition

02:24:31.460 --> 02:24:34.860
and it's so much more
than a transition really,

02:24:34.860 --> 02:24:39.860
but just the recognition that
this program could do so much

02:24:39.990 --> 02:24:42.920
more for Californians
broadband needs today

02:24:42.920 --> 02:24:45.973
and the big, big step
this is taking forward.

02:24:45.973 --> 02:24:49.300
And I just I do want to
acknowledge all the tremendous

02:24:49.300 --> 02:24:52.591
amount of work of everyone
you've already mentioned

02:24:52.591 --> 02:24:56.850
but certainly my judge
wrong and her steadfast

02:24:57.870 --> 02:25:01.300
you know, just kept
the pace as the amount

02:25:01.300 --> 02:25:03.930
of work she, and all the
advisors and all the folks

02:25:03.930 --> 02:25:08.750
in CD have done is really,
really, really tremendous.

02:25:08.750 --> 02:25:10.510
And I'll just say that

02:25:10.510 --> 02:25:12.920
I think the thing I'm
really most excited

02:25:12.920 --> 02:25:17.920
about is the wireline voice
component, the bundled offering

02:25:18.220 --> 02:25:23.220
for customers to sign up to
that front tier bundled package

02:25:23.350 --> 02:25:27.430
that 80 and T bundle
package and charter and Cox.

02:25:27.430 --> 02:25:31.550
And I really hope that
those providers engage

02:25:31.550 --> 02:25:34.333
in this offering and
make it all that it can be.

02:25:34.333 --> 02:25:39.333
And as you continue to
review, as you said in your,

02:25:39.670 --> 02:25:42.210
also in your adoptive
approach to this program,

02:25:42.210 --> 02:25:45.350
so thank you so much
Commissioner Shiroma

02:25:45.350 --> 02:25:46.490
for bringing this forward

02:25:46.490 --> 02:25:49.550
and all of the folks that
you've already think.

02:25:49.550 --> 02:25:52.833
I I'm truly excited to
be voting on this today.

02:25:56.100 --> 02:25:59.423
<v ->I agree with you,
Commissioner Randolph.</v>

02:26:01.500 --> 02:26:02.333
<v ->Thank you.</v>

02:26:02.333 --> 02:26:06.380
I just wanted to as everyone else did to

02:26:06.380 --> 02:26:08.290
thank Commissioner Shiroma and the team

02:26:08.290 --> 02:26:13.290
for all this work, and I just
wanted to emphasize what,

02:26:13.400 --> 02:26:15.788
how important this decision is

02:26:15.788 --> 02:26:18.609
in terms of showing
the innovative spirit

02:26:18.609 --> 02:26:21.389
in our communications division

02:26:21.389 --> 02:26:24.781
in terms of, you know, we really

02:26:24.781 --> 02:26:29.310
everybody talked about how
important these, the decision is

02:26:29.310 --> 02:26:33.910
on these big questions,
like improving accessibility

02:26:33.910 --> 02:26:37.180
but also just, you know,
the tweak they made

02:26:37.180 --> 02:26:39.300
on the measure rate, measured rate issue

02:26:39.300 --> 02:26:42.470
you know, saving some
money, recognizing that

02:26:42.470 --> 02:26:45.760
you know, over 80% of the
customers weren't, you know

02:26:45.760 --> 02:26:49.420
using this feature and
that it just made more sense

02:26:49.420 --> 02:26:52.310
than was more
streamlined to just eliminate

02:26:52.310 --> 02:26:53.630
the measure great.

02:26:53.630 --> 02:26:57.100
And so I just, I really
appreciate that careful attention

02:26:57.100 --> 02:27:00.033
to detail and thoughtfulness
that goes into, you know,

02:27:00.033 --> 02:27:02.060
thinking about these programs

02:27:02.060 --> 02:27:04.860
and thinking about the, both
the big and the small pictures.

02:27:04.860 --> 02:27:06.040
So thank you very much.

02:27:06.040 --> 02:27:08.440
I'm looking forward to
supporting this decision.

02:27:10.530 --> 02:27:12.177
Thank you, Commissioner Randolph.

02:27:12.177 --> 02:27:14.870
Are there any other comments?

02:27:14.870 --> 02:27:19.870
Okay great. See none,
let's call the roll agenda.

02:27:21.600 --> 02:27:23.803
Excuse me. Commissioner Sharoma.

02:27:24.940 --> 02:27:26.270
<v ->Aye.</v>

02:27:26.270 --> 02:27:28.575
<v ->Commissioner Guzman Aceves.</v>

02:27:28.575 --> 02:27:30.210
<v ->Aye.</v>

02:27:30.210 --> 02:27:32.071
<v ->Commissioner Randolph.</v>

02:27:32.071 --> 02:27:33.557
<v ->Yes.</v>

02:27:33.557 --> 02:27:35.332
<v ->Commissioner Rechtschaffen.</v>

02:27:35.332 --> 02:27:36.353
<v ->Yes.</v>

02:27:37.390 --> 02:27:39.570
<v ->President Batjer.</v>

02:27:39.570 --> 02:27:41.950
<v ->Yes. The vote is unanimous.</v>

02:27:41.950 --> 02:27:42.960
Thank you very much.

02:27:42.960 --> 02:27:47.275
And congratulations,
Commissioner Shiroma. (laughs)

02:27:47.275 --> 02:27:51.890
We had talked about
having a lunch break at 12:30,

02:27:51.890 --> 02:27:56.230
but I'm going to turn to
my fellow Commissioners

02:27:56.230 --> 02:28:01.230
and ask if we can complete
the rest of the regular agenda

02:28:01.501 --> 02:28:05.513
or should we take a little break now?

02:28:08.850 --> 02:28:11.050
<v ->If we need to complete
the regular agenda,</v>

02:28:11.050 --> 02:28:13.649
but I'm easy either way.

02:28:13.649 --> 02:28:15.533
<v ->Yeah, likewise.</v>

02:28:16.390 --> 02:28:18.723
<v ->Okay, let's continue.</v>

02:28:21.041 --> 02:28:25.090
Okay. We're moving on
now to item number 10.

02:28:25.090 --> 02:28:28.610
And that is Commissioner Guzman Aceves.

02:28:28.610 --> 02:28:31.010
Thank you, President Batjer.

02:28:31.010 --> 02:28:32.720
This rule making is dealing

02:28:32.720 --> 02:28:37.437
with the incarcerated
people's communication issues

02:28:37.437 --> 02:28:40.690
and we will be determining whether to

02:28:40.690 --> 02:28:43.556
regulate the companies that
provide communication service

02:28:43.556 --> 02:28:46.690
for voice and video
calling to the people

02:28:46.690 --> 02:28:49.090
that are incarcerated
in California's jails

02:28:49.090 --> 02:28:52.010
and prisons and juvenile halls.

02:28:52.010 --> 02:28:53.738
By now it's no secret that incarcerated

02:28:53.738 --> 02:28:57.172
people tend to pay unconscionable
rates to communicate

02:28:57.172 --> 02:29:00.240
with the outside world.

02:29:00.240 --> 02:29:02.910
Who's has terrible negative
effects on incarcerated people

02:29:02.910 --> 02:29:06.530
themselves, making it harder
for them to get legal advice

02:29:06.530 --> 02:29:10.430
and to speak to their loved
ones, which fosters recidivism

02:29:11.415 --> 02:29:13.840
and makes jails and prisons less safe.

02:29:13.840 --> 02:29:16.128
And it has a terrible
effect on the families

02:29:16.128 --> 02:29:20.053
parents, partners, and
children of incarcerated people.

02:29:20.053 --> 02:29:23.710
Nationwide, there are
almost 3 million children

02:29:23.710 --> 02:29:25.758
with at least one incarcerated parents

02:29:25.758 --> 02:29:29.440
and those children have
much higher rates of truancy

02:29:29.440 --> 02:29:32.113
depression, and poor school performance

02:29:32.113 --> 02:29:35.233
and children wouldn't,
without an incarcerated parents.

02:29:36.130 --> 02:29:40.440
In California, the average
cost of a 15 minute phone call

02:29:40.440 --> 02:29:43.293
from a jail or prison is $1.03.

02:29:44.914 --> 02:29:47.750
Maybe that doesn't sound so bad

02:29:47.750 --> 02:29:51.393
but that average
height, a lot of variation.

02:29:51.393 --> 02:29:56.393
If you're in Clovis a 15
minute call, there costs $26.75,

02:29:59.320 --> 02:30:02.710
Newport beach, 15 minute call, $18.75,

02:30:05.110 --> 02:30:10.110
Fremont, $17.75 and so on.

02:30:10.154 --> 02:30:14.390
Juvenile facilities, as I
mentioned are also not immune

02:30:14.390 --> 02:30:18.020
in San Benito County, a 15 minute call

02:30:18.020 --> 02:30:19.740
from an incarcerated youth

02:30:19.740 --> 02:30:23.713
to their family costs $13.65.

02:30:25.080 --> 02:30:28.092
Telephone service is
a public utility service

02:30:28.092 --> 02:30:31.440
and we have a statutory
mandate to ensure

02:30:31.440 --> 02:30:34.878
that the rates paid by
all public utility customers

02:30:34.878 --> 02:30:37.940
including telephone customers are just

02:30:37.940 --> 02:30:40.480
and reasonable, but we have never

02:30:40.480 --> 02:30:43.660
regulated the companies
that provide telephone service

02:30:43.660 --> 02:30:46.900
in jails and prisons and juvenile halls.

02:30:46.900 --> 02:30:50.330
Despite the fact that many
of them hold certificates

02:30:50.330 --> 02:30:53.738
of public convenience
and necessity from us.

02:30:53.738 --> 02:30:55.180
I want to make it clear

02:30:55.180 --> 02:30:58.310
that this is just the
beginning of the proceeding.

02:30:58.310 --> 02:31:00.570
We will develop a factual record

02:31:00.570 --> 02:31:03.578
and reach a decision
that's based on the record,

02:31:03.578 --> 02:31:07.110
but I have already a
hard time seeing how I

02:31:07.110 --> 02:31:10.070
15 minute call costing $30 could be

02:31:10.070 --> 02:31:11.843
considered just reasonable.

02:31:12.694 --> 02:31:15.890
This summer we have seen a
great debate about the nature

02:31:15.890 --> 02:31:19.590
of the role of the criminal
justice system in our society.

02:31:19.590 --> 02:31:21.440
There are no easy answers here

02:31:21.440 --> 02:31:24.350
and reasonable minds can disagree

02:31:24.350 --> 02:31:26.413
but I hope we can all agree on this,

02:31:26.413 --> 02:31:29.340
incarcerated people are people.

02:31:29.340 --> 02:31:31.090
They are Californians.

02:31:31.090 --> 02:31:32.350
They are rate payers

02:31:32.350 --> 02:31:35.200
and they have not lost the
legal protections afforded

02:31:35.200 --> 02:31:37.490
to them as rate payers.

02:31:37.490 --> 02:31:40.670
And this Commission
therefore has a legal obligation.

02:31:40.670 --> 02:31:42.890
And I think a moral duty to ensure

02:31:42.890 --> 02:31:44.373
that they are treated fairly.

02:31:45.760 --> 02:31:47.890
So that's the problem
we're trying to solve

02:31:47.890 --> 02:31:49.410
in this proceeding.

02:31:49.410 --> 02:31:51.710
We will take a broader
approach to solve it.

02:31:51.710 --> 02:31:54.810
We have not predetermined
any outcomes we want to hear

02:31:54.810 --> 02:31:57.020
from a wide range of participants

02:31:57.020 --> 02:32:00.860
including the telecommunications
industry, advocacy groups

02:32:00.860 --> 02:32:04.000
local governments, and
members of the public.

02:32:04.000 --> 02:32:05.850
We will be asking those participants to

02:32:05.850 --> 02:32:08.320
answer four questions that those boil

02:32:08.320 --> 02:32:10.980
down to whether we should set rate caps

02:32:10.980 --> 02:32:13.740
and limit these for
interest state calling

02:32:13.740 --> 02:32:16.216
from California jails and prisons.

02:32:16.216 --> 02:32:18.430
With the answer to those questions

02:32:18.430 --> 02:32:20.980
we'll be able to further
refine our proceeding

02:32:20.980 --> 02:32:23.140
and hopefully reach a solution

02:32:23.140 --> 02:32:27.150
to the problem we've
identified as always.

02:32:27.150 --> 02:32:28.250
This is a team effort.

02:32:30.653 --> 02:32:33.000
And I would say my
Bagley keen partner here

02:32:33.000 --> 02:32:36.060
Commissioner Shiroma which I hope I know

02:32:36.060 --> 02:32:39.710
will share her passion
and greater knowledge

02:32:39.710 --> 02:32:42.950
on this issue than anyone
could have anticipated.

02:32:42.950 --> 02:32:45.170
And it's really, I've
been an honor to work

02:32:45.170 --> 02:32:49.020
with her and her advisors
long testify and turn shy.

02:32:49.020 --> 02:32:52.620
She in particular, I also want to thank

02:32:52.620 --> 02:32:54.110
you know, I want to say before

02:32:54.110 --> 02:32:56.340
I thank some of the critical
people that have gotten us

02:32:56.340 --> 02:33:00.100
to this point that this was not my idea.

02:33:00.100 --> 02:33:01.854
This idea has been here

02:33:01.854 --> 02:33:06.410
before me many people
raise this issue even

02:33:06.410 --> 02:33:08.230
during our environmental justice

02:33:08.230 --> 02:33:10.633
and social justice action plan.

02:33:10.633 --> 02:33:13.076
So I'm not gonna

02:33:13.076 --> 02:33:15.760
I know I'm going to miss
people is what I'm saying

02:33:15.760 --> 02:33:18.070
because so many people have been calling

02:33:18.070 --> 02:33:20.700
for the Commission to
address this issue even

02:33:20.700 --> 02:33:23.003
before us getting here.

02:33:24.198 --> 02:33:26.190
But in terms of the work,

02:33:26.190 --> 02:33:28.260
the folks has really been leading a lot

02:33:28.260 --> 02:33:31.740
of this data gathering and
review of these companies.

02:33:31.740 --> 02:33:33.732
'Cause there's only a handful

02:33:33.732 --> 02:33:36.730
of them starting with the
communications division.

02:33:36.730 --> 02:33:39.630
Eric Walmack has been tremendous

02:33:39.630 --> 02:33:44.130
in his team, coward, surly and Amy loud.

02:33:44.130 --> 02:33:47.330
They've all been working
tremendously and bringing a lot

02:33:47.330 --> 02:33:52.160
of insight and worked
really on a very tight timeline

02:33:52.160 --> 02:33:55.090
once they were assigned
the communications director

02:33:55.090 --> 02:33:57.910
of course, Rob Osborne
and Michael Minkus.

02:33:57.910 --> 02:34:00.970
My former advisor who
really helped educate me

02:34:00.970 --> 02:34:04.270
on this issue and the role
we had the obligation to

02:34:04.270 --> 02:34:08.810
take this on I'm assistant
general counsel, Pella

02:34:08.810 --> 02:34:12.963
Miscavige, and GK guy out of
though for his tremendous work

02:34:12.963 --> 02:34:15.440
and all the Administrative Law Judges

02:34:15.440 --> 02:34:18.620
including Katherine
MacDonald, Anthony Colbert

02:34:18.620 --> 02:34:22.580
and Kathy Folwell for
really bringing this across.

02:34:22.580 --> 02:34:25.850
And finally to my staff,
Stephanie Gustine, Sarah Sharp

02:34:25.850 --> 02:34:29.750
and Jonathan Colts for
all of their work on this.

02:34:29.750 --> 02:34:30.670
So thank you very much.

02:34:30.670 --> 02:34:34.680
And I am very excited to get
this proceeding off the ground.

02:34:34.680 --> 02:34:35.513
Thank you.

02:34:36.530 --> 02:34:38.250
<v ->Thank you Commissioner
Guzman Aceves.</v>

02:34:38.250 --> 02:34:39.720
Yes, Commissioner Shiroma.

02:34:41.370 --> 02:34:42.880
<v ->Thank you, President Batjer.</v>

02:34:42.880 --> 02:34:46.341
And thank you,
Commissioner Guzman Aceves.

02:34:46.341 --> 02:34:50.991
Yes. The opening of
this OER is it's timely.

02:34:50.991 --> 02:34:51.910
It's overdue.

02:34:51.910 --> 02:34:55.490
We need to analyze and
address these high fees charged

02:34:55.490 --> 02:35:00.490
for instate interstate calling
in our jails and prisons.

02:35:01.585 --> 02:35:03.690
You know, it's timely

02:35:03.690 --> 02:35:07.130
in that during this COVID-19
pandemic, our prisons

02:35:07.130 --> 02:35:12.130
and jails have been hit terribly
by the virus, which has led

02:35:12.430 --> 02:35:17.430
to widespread restrictions
in order to limit the spread.

02:35:18.650 --> 02:35:21.090
When it's on visitations

02:35:21.090 --> 02:35:24.040
this has prevented those
who are incarcerated

02:35:24.040 --> 02:35:28.280
and their families from
receiving the emotional support.

02:35:28.280 --> 02:35:32.131
That's so important that
comes from those familial bonds

02:35:32.131 --> 02:35:36.185
which are essential
for personal recovery.

02:35:36.185 --> 02:35:38.760
And this is during a
time when our country

02:35:38.760 --> 02:35:42.217
and world are suffering
terribly, and many

02:35:43.090 --> 02:35:48.090
of us have friends, family
members who've been incarcerated.

02:35:48.940 --> 02:35:50.672
I am no different.

02:35:50.672 --> 02:35:55.672
And that family bond is so essential.

02:35:56.510 --> 02:35:57.343
This is what we do.

02:35:57.343 --> 02:35:59.650
And that data has shown
that California incarcerated

02:35:59.650 --> 02:36:02.660
calling rates are among
the highest in the country.

02:36:02.660 --> 02:36:04.740
Shockingly, the shocking to see

02:36:04.740 --> 02:36:09.628
that somebody was being
charged $26 for a 15 minute call

02:36:09.628 --> 02:36:14.628
and that's 190 jails
and prison facilities

02:36:14.730 --> 02:36:19.720
in California are charging
over the FCC cap of $3

02:36:22.170 --> 02:36:24.113
and 50 cents for a 15 minute call.

02:36:25.130 --> 02:36:28.160
California has taken some big steps

02:36:28.160 --> 02:36:31.140
this legislative session to address bias

02:36:31.140 --> 02:36:33.080
in the criminal justice
system, including

02:36:33.080 --> 02:36:38.080
Governor Noosa explaining
the racial justice act AB 2542

02:36:38.210 --> 02:36:42.406
by informed woman Ash
called up WC and signed this

02:36:42.406 --> 02:36:45.780
before the deadline of September 30th.

02:36:45.780 --> 02:36:48.240
But we do know that racial minorities

02:36:48.240 --> 02:36:51.264
and low income people are
already disproportionally affected

02:36:51.264 --> 02:36:52.730
by the justice system.

02:36:52.730 --> 02:36:55.640
And as such are
disproportionally affected

02:36:55.640 --> 02:36:59.816
by these high rates and the
FCC who don't usually look to

02:36:59.816 --> 02:37:04.482
as showing leadership of a
day are doing their part on this

02:37:04.482 --> 02:37:07.010
by opening a little making on

02:37:07.010 --> 02:37:09.170
interstate incarcerated calling.

02:37:09.170 --> 02:37:10.003
And they have called

02:37:10.003 --> 02:37:14.964
upon States who regulate the 80%

02:37:14.964 --> 02:37:18.561
or so of the calls from
incarcerated persons.

02:37:18.561 --> 02:37:23.561
They have called upon
States to do their part.

02:37:23.980 --> 02:37:26.819
And so this is a very
important step for the CPC

02:37:26.819 --> 02:37:30.160
to take this very important step.

02:37:30.160 --> 02:37:32.380
So thank you, Commissioners
Guzman Aceves

02:37:32.380 --> 02:37:36.543
for your leadership
on this to ALJ the team.

02:37:37.620 --> 02:37:39.573
<v ->Commissioner
Guzman Aceves outlined,</v>

02:37:41.186 --> 02:37:42.670
and I do want to do another shout

02:37:43.561 --> 02:37:45.130
out for our legal team, Helen Miscavige

02:37:45.130 --> 02:37:50.130
and in vacate guzzle, look
forward to working on this OIR.

02:37:50.480 --> 02:37:51.313
Thank you.

02:37:52.756 --> 02:37:54.504
<v ->Thank you,
Commissioner Shiroma.</v>

02:37:54.504 --> 02:37:56.605
Commissioner Guzman Aceves

02:37:56.605 --> 02:38:00.170
outlined strong voice of thank you.

02:38:00.170 --> 02:38:03.120
I have a long, I'm just going to say it.

02:38:03.120 --> 02:38:05.850
I have long hated this
policy, my public service

02:38:05.850 --> 02:38:09.700
and stayed into that as
well as here in California

02:38:09.700 --> 02:38:14.443
where I've just never
understood how we can, how we

02:38:15.970 --> 02:38:20.210
as a society can treat the
incarcerated individuals this way

02:38:20.210 --> 02:38:21.240
and their families

02:38:23.131 --> 02:38:27.090
and that the model of
how, where this money goes

02:38:27.090 --> 02:38:30.220
and what budgets it supports has got to

02:38:31.603 --> 02:38:33.743
I think, needs to be
carefully looked at.

02:38:35.400 --> 02:38:39.040
So I really appreciate
that we are taking this step.

02:38:39.040 --> 02:38:42.560
It's incredibly important
and I look forward

02:38:42.560 --> 02:38:47.560
to the efforts that this
Hawaii will be ushering in.

02:38:47.830 --> 02:38:49.443
So thank you.

02:38:50.750 --> 02:38:53.693
Any other comments on this item?

02:38:55.810 --> 02:38:57.133
Okay, seeing none.

02:38:58.398 --> 02:39:00.230
No, the agenda clerk,
please call the roll

02:39:00.230 --> 02:39:02.093
on item number 10.

02:39:03.601 --> 02:39:05.434
<v ->Commissioner Shiroma.</v>

02:39:05.434 --> 02:39:07.092
<v ->Aye.</v>

02:39:07.092 --> 02:39:08.656
<v ->Commissioner Guzman Aceves.</v>

02:39:08.656 --> 02:39:09.489
<v ->Aye.</v>

02:39:10.710 --> 02:39:13.150
<v ->Commissioner Randolph.</v>

02:39:13.150 --> 02:39:15.317
(mumbles)

02:39:16.370 --> 02:39:18.380
<v ->Commissioner Rechtschaffen.</v>

02:39:18.380 --> 02:39:19.890
<v ->Yes.</v>

02:39:19.890 --> 02:39:21.083
<v ->President Batjer.</v>

02:39:21.083 --> 02:39:25.200
<v ->It's very enthusiastic.
Yes, thank you.</v>

02:39:25.200 --> 02:39:27.030
The vote is unanimous on item.

02:39:27.030 --> 02:39:30.203
Number 10, moving now to item number 12.

02:39:31.830 --> 02:39:33.160
Commissioner Guzman Aceves.

02:39:33.160 --> 02:39:34.800
This is yours as well.

02:39:34.800 --> 02:39:36.333
<v ->Yes. Thank you.</v>

02:39:36.333 --> 02:39:39.520
This is a extension statutory deadline

02:39:39.520 --> 02:39:42.080
for a proceeding dealing

02:39:42.080 --> 02:39:44.785
with demand response
per habited resources.

02:39:44.785 --> 02:39:48.670
And there is a still
more work to be done

02:39:48.670 --> 02:39:51.880
on the proceeding
related to data loggers

02:39:51.880 --> 02:39:56.690
and metrics on how we
can do the verification plans

02:39:56.690 --> 02:39:58.780
on these prohibited resources.

02:39:58.780 --> 02:40:02.370
So I'm asking for an
extension to be able to work

02:40:02.370 --> 02:40:04.890
through this very technical area

02:40:04.890 --> 02:40:08.110
and to present a PD next year.

02:40:08.110 --> 02:40:12.660
So I'm asking for an
extension until April of 2021.

02:40:12.660 --> 02:40:13.493
Thank you.

02:40:14.920 --> 02:40:16.800
<v ->Thank you, Commissioner
Guzman Aceves.</v>

02:40:16.800 --> 02:40:18.203
Any comments or questions?

02:40:19.500 --> 02:40:22.680
Okay. Seeing none will be agenda court.

02:40:22.680 --> 02:40:25.603
Please call the roll on item number 12.

02:40:27.150 --> 02:40:29.150
<v ->Commissioner Shiroma.</v>

02:40:29.150 --> 02:40:30.530
<v ->Aye.</v>

02:40:30.530 --> 02:40:32.734
<v ->Commissioner Guzman Aceves.</v>

02:40:32.734 --> 02:40:33.907
<v ->Aye.</v>

02:40:33.907 --> 02:40:35.303
<v ->Commissioner Randolph.</v>

02:40:36.648 --> 02:40:37.481
<v ->Yes.</v>

02:40:38.446 --> 02:40:40.228
<v ->Commissioner Rechtschaffen.</v>

02:40:40.228 --> 02:40:41.061
<v ->Yes.</v>

02:40:41.929 --> 02:40:43.200
<v ->President Batjer.</v>

02:40:43.200 --> 02:40:45.940
<v ->Yes. The vote is
unanimous on item number 12.</v>

02:40:45.940 --> 02:40:47.309
Thank you.

02:40:47.309 --> 02:40:49.513
Moving to item number
13, Commissioner Randolph.

02:40:51.360 --> 02:40:54.299
<v ->This is a proposed decision</v>

02:40:54.299 --> 02:40:57.200
to extend a statutory deadline.

02:40:57.200 --> 02:41:01.570
It's a complaint case that
involves allocating the cost

02:41:01.570 --> 02:41:05.090
of a water main in the new
building development at the close

02:41:05.090 --> 02:41:08.330
of the hearing, the
complainant asked for a delay

02:41:08.330 --> 02:41:12.070
in the briefing schedule,
the Administrative Law Judge

02:41:12.070 --> 02:41:16.000
granted that extension,
that extension of time.

02:41:16.000 --> 02:41:17.440
Plus the complications brought

02:41:17.440 --> 02:41:21.420
out, brought about by the
pandemic require an extension

02:41:21.420 --> 02:41:24.997
of the statutory deadline to
December 4th, to allow time

02:41:24.997 --> 02:41:26.950
for the ALJ to issue a presiding

02:41:26.950 --> 02:41:30.410
officer's decision parties
to potentially file appeals

02:41:30.410 --> 02:41:32.970
and the Commission to review the

02:41:32.970 --> 02:41:35.530
modified providing officer's decision.

02:41:35.530 --> 02:41:37.543
I asked for your support of item 13.

02:41:38.470 --> 02:41:40.763
Thank you. Any questions
on item number 13?

02:41:41.860 --> 02:41:44.210
Okay, seeing none,
we'll the agenda clerk

02:41:44.210 --> 02:41:45.260
please call the roll.

02:41:46.198 --> 02:41:48.178
<v ->Commissioner Shiroma.</v>

02:41:48.178 --> 02:41:49.230
<v ->Aye.</v>

02:41:49.230 --> 02:41:51.646
<v ->Commissioner Guzman Aceves.</v>

02:41:51.646 --> 02:41:52.479
<v ->Aye.</v>

02:41:53.672 --> 02:41:55.677
Commissioner Randolph.

02:41:55.677 --> 02:41:56.510
<v ->Yes.</v>

02:41:57.389 --> 02:41:58.763
<v ->Commissioner Rechtschaffen.</v>

02:41:58.763 --> 02:42:01.102
<v ->Yes.</v>

02:42:01.102 --> 02:42:03.150
<v ->President Batjer.</v>

02:42:03.150 --> 02:42:06.240
<v ->Yes. The vote is
unanimous on item number 13.</v>

02:42:06.240 --> 02:42:09.053
Moving now to item 14,
Commissioner Randolph.

02:42:10.430 --> 02:42:11.910
<v ->This is another complaint case.</v>

02:42:11.910 --> 02:42:14.220
It's an expedited complaint proceeding

02:42:14.220 --> 02:42:16.430
concerning a customer's participation

02:42:16.430 --> 02:42:18.820
in the California alternative rates

02:42:18.820 --> 02:42:21.130
for energy or care program

02:42:21.130 --> 02:42:24.049
and disputed charges over
a four month billing period.

02:42:24.049 --> 02:42:26.720
Although an expedited complaint

02:42:26.720 --> 02:42:29.820
proceeding is not technically
an adjudicatory proceeding

02:42:29.820 --> 02:42:31.550
as practice, we have added heat.

02:42:31.550 --> 02:42:32.383
We have adhered

02:42:32.383 --> 02:42:35.680
to the same deadlines as in
an adjudicatory proceeding.

02:42:35.680 --> 02:42:39.810
So the statutory deadline
would be October 15th, 2020.

02:42:39.810 --> 02:42:41.830
However the assigned administrative law

02:42:41.830 --> 02:42:43.930
judge requires additional time to

02:42:43.930 --> 02:42:45.660
prepare a proposed decision.

02:42:45.660 --> 02:42:47.670
So this order would extend the deadline

02:42:47.670 --> 02:42:50.260
to December 18th, 2020.

02:42:50.260 --> 02:42:52.283
And I ask for your support. Thank you.

02:42:53.150 --> 02:42:54.330
<v ->Thank you.</v>

02:42:54.330 --> 02:42:57.133
Any questions or comments on item 14?

02:42:58.710 --> 02:43:00.190
Seeing none, will the agenda clerk

02:43:00.190 --> 02:43:02.384
please call the roll Commissioner.

02:43:02.384 --> 02:43:04.231
<v ->Commissioner Shiroma.</v>

02:43:04.231 --> 02:43:05.310
<v ->Aye.</v>

02:43:05.310 --> 02:43:07.290
<v ->Commissioner Guzman Aceves..</v>

02:43:07.290 --> 02:43:08.640
<v ->Aye.</v>

02:43:08.640 --> 02:43:10.013
<v ->Commissioner Randolph.</v>

02:43:10.013 --> 02:43:12.080
<v ->Yes.</v>

02:43:12.080 --> 02:43:13.890
<v ->Commissioner Rechtschaffen.</v>

02:43:13.890 --> 02:43:15.191
<v ->Yes.</v>

02:43:15.191 --> 02:43:16.920
<v ->President Batjer.</v>

02:43:16.920 --> 02:43:19.960
<v ->Yes. The vote is
unanimous on item 14.</v>

02:43:19.960 --> 02:43:23.167
Moving now to item 15,
Commissioner Guzman Aceves.

02:43:24.330 --> 02:43:25.200
<v ->Thank you.</v>

02:43:25.200 --> 02:43:29.096
Okay. This item is dealing
with another statutory extension

02:43:29.096 --> 02:43:33.415
of a complaint Galasso versus
Southern California Edison.

02:43:33.415 --> 02:43:36.811
Also an issue dealing
with medical baseline rates

02:43:36.811 --> 02:43:40.203
care rates and all
electric rate enrollment.

02:43:41.510 --> 02:43:43.660
Although both the
complainant and the defendant

02:43:43.660 --> 02:43:46.930
have been working in good
faith to attempt a settlement

02:43:46.930 --> 02:43:48.400
and the matter.

02:43:48.400 --> 02:43:51.249
And they have initiated the
alternative dispute resolution

02:43:51.249 --> 02:43:53.380
because of COVID.

02:43:53.380 --> 02:43:55.580
And because specifically of the request

02:43:55.580 --> 02:43:59.690
of the complainant to
have an in person meeting

02:43:59.690 --> 02:44:03.280
rather than a WebEx, we are
working through the scheduling

02:44:03.280 --> 02:44:06.360
of that with the
Administrative Law Judge.

02:44:06.360 --> 02:44:08.150
For that reason, I'm going to be asking

02:44:08.150 --> 02:44:12.640
for a 12 month extension
on this, on this, excuse me

02:44:12.640 --> 02:44:17.230
a six month extension to
resolve it by April of 2021.

02:44:19.640 --> 02:44:20.473
Thank you.

02:44:22.210 --> 02:44:25.580
<v ->Are there any comments
or questions on item 15?</v>

02:44:25.580 --> 02:44:28.875
I'm glad you moved that
from 12 to six in your remarks.

02:44:28.875 --> 02:44:31.663
That made me both.

02:44:32.650 --> 02:44:33.920
Okay, seeing none

02:44:33.920 --> 02:44:36.563
will the agenda clerk
please call the roll.

02:44:38.974 --> 02:44:40.652
<v ->Commissioner Shiroma.</v>

02:44:40.652 --> 02:44:42.220
<v ->Aye.</v>

02:44:42.220 --> 02:44:43.734
<v ->Commissioner Guzman Aceves.</v>

02:44:43.734 --> 02:44:44.971
<v ->Aye.</v>

02:44:44.971 --> 02:44:47.031
<v ->Commissioner Randolph.</v>

02:44:47.031 --> 02:44:48.013
<v ->Yeah.</v>

02:44:49.000 --> 02:44:50.915
<v ->Commissioner Rechtschaffen.</v>

02:44:50.915 --> 02:44:52.646
<v ->Yes.</v>

02:44:52.646 --> 02:44:54.540
<v ->President Batjer.</v>

02:44:54.540 --> 02:44:57.190
<v ->Yes. The vote is
unanimous on item 15.</v>

02:44:57.190 --> 02:45:00.314
Moving now to item 16,
Commissioner Guzman Aceves.

02:45:00.314 --> 02:45:04.670
<v ->Yes. This is a,
another complaint.</v>

02:45:04.670 --> 02:45:09.670
A case between utility
telecom group, LLC against

02:45:11.557 --> 02:45:16.320
AT&amp;T, the parties are
looking to resolve the issue

02:45:16.320 --> 02:45:17.650
through mediation

02:45:17.650 --> 02:45:20.898
or through the alternative
dispute resolution process.

02:45:20.898 --> 02:45:23.957
And I am asking to give them that time

02:45:23.957 --> 02:45:28.957
until April of next year. Thank you.

02:45:30.640 --> 02:45:32.850
<v ->Thank you. Any
comments or questions?</v>

02:45:32.850 --> 02:45:34.191
Okay, seeing none,

02:45:34.191 --> 02:45:35.953
will the agenda clerk
please call the roll.

02:45:36.930 --> 02:45:38.622
<v ->Commissioner Shiroma.</v>

02:45:38.622 --> 02:45:40.100
<v ->Aye.</v>

02:45:40.100 --> 02:45:42.203
<v ->Commissioner Guzman Aceves.</v>

02:45:42.203 --> 02:45:43.130
<v ->Aye.</v>

02:45:43.130 --> 02:45:44.786
<v ->Commissioner Randolph.</v>

02:45:44.786 --> 02:45:45.619
<v ->Yes.</v>

02:45:47.248 --> 02:45:48.803
<v ->Commissioner Rechtschaffen.</v>

02:45:48.803 --> 02:45:50.464
<v ->Yes.</v>

02:45:50.464 --> 02:45:51.980
<v ->President Batjer.</v>

02:45:51.980 --> 02:45:55.620
<v ->Yes. The vote is
unanimous on item 16.</v>

02:45:55.620 --> 02:45:58.530
That completes our regular agenda items.

02:45:58.530 --> 02:46:01.923
We will now take a 45 minute break.

02:46:01.923 --> 02:46:05.000
So it is now 12:45.

02:46:05.000 --> 02:46:07.730
We'll be back at 1:30.

02:46:07.730 --> 02:46:08.563
Thank you all.

02:46:12.000 --> 02:46:12.833
<v ->Thank you.</v>

02:46:19.028 --> 02:46:19.984
<v ->Here.</v>

02:46:19.984 --> 02:46:21.090
<v ->Commissioner Randolph.</v>

02:46:21.090 --> 02:46:22.596
<v ->Here.</v>

02:46:22.596 --> 02:46:24.059
<v ->Commissioner Rechtschaffen.</v>

02:46:24.059 --> 02:46:26.323
<v ->Present.</v>

02:46:26.323 --> 02:46:28.350
<v ->President Batjer.</v>

02:46:28.350 --> 02:46:31.150
Here, we have established
quorum. Thank you.

02:46:31.150 --> 02:46:33.620
There is, we're now
moving on on our agenda

02:46:33.620 --> 02:46:35.112
to management reports

02:46:35.112 --> 02:46:38.330
and there is no report
for item 17 report

02:46:38.330 --> 02:46:41.060
and discussion on recent
consumer protection

02:46:41.060 --> 02:46:44.334
on safety activities management report.

02:46:44.334 --> 02:46:45.917
So we will move on

02:46:45.917 --> 02:46:50.260
and our agenda to agenda
two Commissioner's report.

02:46:50.260 --> 02:46:52.700
And I'm going to start

02:46:52.700 --> 02:46:55.100
if it's okay with my fellow
Commissioners today.

02:46:56.560 --> 02:47:01.020
As many of you know, the
election is November 3rd, 2020

02:47:01.020 --> 02:47:02.620
which is less than a month away.

02:47:03.720 --> 02:47:05.511
If you have not registered to vote

02:47:05.511 --> 02:47:07.940
there is still time in California.

02:47:07.940 --> 02:47:12.940
The deadline to register is
October 19th, October 19th

02:47:13.360 --> 02:47:17.610
please register voting
is a fundamental process

02:47:17.610 --> 02:47:18.990
in our democracy.

02:47:18.990 --> 02:47:22.080
The right to vote for
all eligible Americans

02:47:22.080 --> 02:47:23.560
was hard fought.

02:47:23.560 --> 02:47:26.660
Women were not
allowed to vote until 1920.

02:47:26.660 --> 02:47:28.880
Although black American men were granted

02:47:28.880 --> 02:47:31.120
the right to vote in 1870.

02:47:31.120 --> 02:47:35.880
There were many barriers to
discourage and prevent them

02:47:35.880 --> 02:47:40.500
from voting the voting rights
act in 1965, removes some

02:47:40.500 --> 02:47:43.443
of these obstacles and
granted all black Americans

02:47:43.443 --> 02:47:47.290
and other racial
minorities, the right to vote.

02:47:47.290 --> 02:47:50.760
However, for many
communities that are still barriers

02:47:50.760 --> 02:47:53.070
to voting the right to vote

02:47:53.070 --> 02:47:55.502
should never be taken for granted.

02:47:55.502 --> 02:47:58.920
Participating in elections
provides an opportunity

02:47:58.920 --> 02:48:02.798
for us to have our
voice on important issues

02:48:02.798 --> 02:48:07.220
and elect those who
we wish to represent us.

02:48:07.220 --> 02:48:10.000
I encourage all eligible citizens to

02:48:10.000 --> 02:48:13.557
exercise their right to vote
on November 3rd, please vote.

02:48:16.570 --> 02:48:18.740
For more information about registering

02:48:18.740 --> 02:48:20.940
to vote polling places

02:48:20.940 --> 02:48:23.490
and ballot measures for general election

02:48:23.490 --> 02:48:28.490
please visit the secretary of
state's website at sos.ca.gov.

02:48:30.410 --> 02:48:32.820
I would also like to
talk about the census

02:48:32.820 --> 02:48:37.010
because representation
really matters, every 10 years

02:48:37.010 --> 02:48:42.010
the US Bureau of census
conducted a count of every person

02:48:42.637 --> 02:48:46.440
in each of the 50
States and five territories

02:48:46.440 --> 02:48:49.743
as mandated by the
United States constitution.

02:48:51.057 --> 02:48:54.610
The 2020 census data will
be used to draw congressional

02:48:54.610 --> 02:48:57.960
and state legislative
districts inform federal funding

02:48:57.960 --> 02:49:02.960
for each state and provide
data that will impact communities

02:49:03.050 --> 02:49:04.393
for the next decade.

02:49:05.950 --> 02:49:09.180
Every year, billions of
dollars in federal funding

02:49:09.180 --> 02:49:13.010
goes to schools roads,
hospitals, fire departments

02:49:13.010 --> 02:49:15.700
and other important
infrastructure programs

02:49:15.700 --> 02:49:18.150
based on the census data.

02:49:18.150 --> 02:49:22.770
The deadline to complete the
census is October 31st, 2020.

02:49:22.770 --> 02:49:27.770
And you can do it
online at 2020census.gov.

02:49:28.230 --> 02:49:31.110
I urge everyone to please fill

02:49:31.110 --> 02:49:35.110
out the sense that you have if
you have not done so already

02:49:35.110 --> 02:49:36.052
it is critical to get a complete
count of every person.

02:49:36.052 --> 02:49:41.052
Last week, my fellow Commissioners and I

02:49:43.090 --> 02:49:45.405
hosted another successful on bonk

02:49:45.405 --> 02:49:49.923
and supplier diversity with
520 people participating

02:49:49.923 --> 02:49:54.408
by the webcast and phone
by way of background.

02:49:54.408 --> 02:49:57.950
The utility supplier diversity
program was created

02:49:57.950 --> 02:49:59.760
as a voluntary program

02:49:59.760 --> 02:50:03.528
over three decades ago,
via general order 156.

02:50:03.528 --> 02:50:06.280
This programming encourages

02:50:06.280 --> 02:50:10.610
California utilities to award
a fair proportion of contracts

02:50:10.610 --> 02:50:15.310
and subcontracts for products
to products and services

02:50:15.310 --> 02:50:19.321
to women, minority disabled
veteran business enterprises

02:50:19.321 --> 02:50:21.650
and to members of the lesbian, gay,

02:50:21.650 --> 02:50:24.303
bisexual and transgender communities.

02:50:25.640 --> 02:50:27.340
The theme of this year is on bonk,

02:50:27.340 --> 02:50:30.360
was generating economic success

02:50:30.360 --> 02:50:32.980
during uncertain economic times.

02:50:32.980 --> 02:50:37.510
And over the course of
three lively panel discussions

02:50:37.510 --> 02:50:41.330
we learned much about the
successes and challenges with it

02:50:41.330 --> 02:50:46.330
with diversifying suppliers,
particularly during COVID-19

02:50:46.364 --> 02:50:49.320
although the utilities are well

02:50:49.320 --> 02:50:52.660
exceeding their supplier
diversity targets in aggregate.

02:50:52.660 --> 02:50:54.670
The unbank also highlighted the

02:50:54.670 --> 02:50:58.430
disproportionate challenges
that diverse businesses face

02:50:58.430 --> 02:51:02.250
due to the pandemic, which
make this work even more critical

02:51:02.250 --> 02:51:04.190
as we go forward.

02:51:04.190 --> 02:51:06.781
For example we heard from
the California black chamber

02:51:06.781 --> 02:51:10.980
that nearly 40% of the black
owned businesses may fall

02:51:10.980 --> 02:51:13.963
may fail as a result of the pandemic.

02:51:15.188 --> 02:51:18.024
We also learned of the challenges

02:51:18.024 --> 02:51:20.580
that utilities face in contracting

02:51:20.580 --> 02:51:24.250
with diverse suppliers in the
vegetation management space

02:51:24.250 --> 02:51:28.710
as utilities, fire
prevention, efforts, intensify

02:51:28.710 --> 02:51:32.180
as we continue to experience
challenging economic times

02:51:32.180 --> 02:51:34.400
this event served to highlight that

02:51:34.400 --> 02:51:36.820
much work remains
to be done, to maintain

02:51:36.820 --> 02:51:41.510
and build on the progress
we've made thus far beyond.

02:51:41.510 --> 02:51:45.290
Bonk also provided us with
an opportunity to remember

02:51:45.290 --> 02:51:48.310
and pay special tribute to
the honorable Gwen Moore

02:51:48.310 --> 02:51:50.120
who recently passed.

02:51:50.120 --> 02:51:52.440
Ms. Moore served in
the California assembly

02:51:52.440 --> 02:51:55.570
for 16 years, where she authored the

02:51:55.570 --> 02:51:59.643
legislation that established
the supplier diversity program

02:51:59.643 --> 02:52:01.560
throughout her distinguished career.

02:52:01.560 --> 02:52:04.567
She acted as a champion
for diversity in California.

02:52:04.567 --> 02:52:07.980
Well, she will be dearly missed.

02:52:07.980 --> 02:52:10.380
We will do our part to carry

02:52:10.380 --> 02:52:12.363
on her legacy through this program.

02:52:13.210 --> 02:52:16.600
Thanks again to all who
participated and thanks

02:52:16.600 --> 02:52:21.060
to the team led by our own
Stephanie Green for organizing

02:52:21.060 --> 02:52:25.690
and carrying out such a well
organized informant events.

02:52:25.690 --> 02:52:29.770
And it was done all virtually,
which was a real stretch

02:52:29.770 --> 02:52:33.140
for everybody, but it worked
out and it worked out well.

02:52:33.140 --> 02:52:34.050
Now I will turn

02:52:34.050 --> 02:52:37.530
to my fellow Commissioners
for their Commissioner's report.

02:52:37.530 --> 02:52:41.480
Thank you, would like to go next.

02:52:41.480 --> 02:52:42.730
Yes Commissioner Randolph

02:52:44.540 --> 02:52:45.884
<v ->Thank you, President Batjer.</v>

02:52:45.884 --> 02:52:50.884
Just wanted to note that
on October 15th, next week

02:52:51.990 --> 02:52:53.870
there will be a virtual workshop

02:52:53.870 --> 02:52:57.360
in the Aliso Canyon proceeding.

02:52:57.360 --> 02:52:59.410
This will be our third
and final workshop

02:53:01.396 --> 02:53:02.823
on presenting the modeling results.

02:53:04.060 --> 02:53:06.370
And so it'll be an important discussion.

02:53:06.370 --> 02:53:10.370
The modelers will be
there interacting with parties

02:53:10.370 --> 02:53:14.780
and discussing the
results, and that will result

02:53:14.780 --> 02:53:18.660
in a workshop report
to finalize the modeling

02:53:18.660 --> 02:53:23.360
and close out phase
two of the proceeding.

02:53:23.360 --> 02:53:25.310
So it's a very important workshop

02:53:25.310 --> 02:53:28.776
and the consultants who are
working with us on phase three

02:53:28.776 --> 02:53:30.720
the ones who will be working with us

02:53:30.720 --> 02:53:33.960
on establishing alternatives
to Elisa will be present

02:53:33.960 --> 02:53:35.810
at the workshop as well.

02:53:35.810 --> 02:53:37.700
So I encourage those of you active

02:53:37.700 --> 02:53:40.300
in the proceeding to
attend the workshop.

02:53:40.300 --> 02:53:41.300
Thank you very much.

02:53:43.070 --> 02:53:44.240
<v ->Important workshops.</v>

02:53:44.240 --> 02:53:46.177
Thank you Commissioner Randolph

02:53:46.177 --> 02:53:47.927
Commissioner Shiroma.

02:53:49.920 --> 02:53:51.633
<v ->Yes. Thank you,
President Batjer.</v>

02:53:51.633 --> 02:53:53.040
I simply want to announce

02:53:53.040 --> 02:53:56.700
that we will be having
public participation hearings

02:53:56.700 --> 02:54:01.700
in the Pacific gas and electric
general rate case phase two

02:54:02.190 --> 02:54:06.283
and that's 19-11-19.

02:54:07.702 --> 02:54:10.550
They will be on Friday,
November 6th at 2:00 p.m.

02:54:10.550 --> 02:54:12.520
and 6:00 p.m.

02:54:12.520 --> 02:54:14.090
They will be held virtually

02:54:14.090 --> 02:54:16.030
and we encourage all who are interested

02:54:16.030 --> 02:54:21.030
of course, to attend the
logging information is available

02:54:21.160 --> 02:54:23.750
on our CPAC website.

02:54:23.750 --> 02:54:25.990
And there's also a contact

02:54:25.990 --> 02:54:30.760
for the public advisor's
office who helped to put these

02:54:31.596 --> 02:54:33.820
on, but I do want to
thank all of our staff

02:54:33.820 --> 02:54:38.090
in the ALJ division, the
public advisor's office

02:54:38.090 --> 02:54:41.630
and information
technology, Robert Stanford

02:54:41.630 --> 02:54:45.720
who does so much to make
these voting meetings work

02:54:45.720 --> 02:54:48.215
Joe Hagan, and the whole team

02:54:48.215 --> 02:54:50.550
for the cross divisional effort

02:54:50.550 --> 02:54:54.133
to continue these essential
public participation hearings

02:54:54.133 --> 02:54:58.610
and in an online format
during this pandemic

02:54:58.610 --> 02:55:00.960
that way we can hear from the customers

02:55:00.960 --> 02:55:04.150
from the rate payers
firsthand and they're common

02:55:04.150 --> 02:55:08.420
in pharma proceedings and
we've had very good attendance

02:55:08.420 --> 02:55:12.060
at my other PPH is I'm sure the

02:55:12.060 --> 02:55:13.907
other Commissions that
experienced the same thing

02:55:13.907 --> 02:55:15.530
in the online environment.

02:55:15.530 --> 02:55:18.540
It's actually easier to participate

02:55:18.540 --> 02:55:22.440
than having to drive
some distance or take time

02:55:22.440 --> 02:55:27.440
off from them the evening
when you're trying to spend it

02:55:28.380 --> 02:55:30.979
with your kids and family and so forth.

02:55:30.979 --> 02:55:35.979
So November six, 2:00 p.m. and 6:00 p.m.

02:55:37.558 --> 02:55:39.150
Thank you.

02:55:39.150 --> 02:55:41.633
<v ->Thank you Commissioner Shiroma.</v>

02:55:41.633 --> 02:55:43.883
Commissioner Rechtschaffen.

02:55:46.200 --> 02:55:47.090
<v ->President Batjer.</v>

02:55:47.090 --> 02:55:50.760
In addition to the summary
that you provided about the bank.

02:55:50.760 --> 02:55:55.200
I want to highlight a
couple of things we heard

02:55:55.200 --> 02:55:58.676
in the way of feedback for
us to consider going forward.

02:55:58.676 --> 02:56:02.930
We heard from some of the
advocates for veterans groups

02:56:02.930 --> 02:56:06.120
that they would like
preference preferences

02:56:06.120 --> 02:56:11.120
or goals, even if, if they,
if they're not disabled

02:56:11.310 --> 02:56:14.365
and both the disabled and the
LGBTQ communities have argued

02:56:14.365 --> 02:56:18.920
for goals to encourage utilities

02:56:20.050 --> 02:56:21.780
to diversify their supply chains

02:56:21.780 --> 02:56:24.100
and in those communities as well.

02:56:24.100 --> 02:56:25.500
And those are things we will

02:56:26.575 --> 02:56:28.960
certainly consider going forward.

02:56:28.960 --> 02:56:30.960
On October 16th

02:56:30.960 --> 02:56:35.420
the disadvantaged communities
advisory group will meet

02:56:35.420 --> 02:56:40.072
and hear joint presentation
from the PUC and the CDC

02:56:40.072 --> 02:56:42.310
about metrics and various

02:56:42.310 --> 02:56:45.030
definitions of
disadvantaged communities.

02:56:45.030 --> 02:56:46.840
The CEC will also present

02:56:46.840 --> 02:56:49.610
under building decarbonization efforts

02:56:49.610 --> 02:56:53.650
and that's October 16th at 1:00 p.m.

02:56:53.650 --> 02:56:56.110
Of course, something held virtually.

02:56:56.110 --> 02:57:00.933
Finally we issued our draft resolution

02:57:00.933 --> 02:57:05.933
with the PUC enforcement
policy earlier this month

02:57:07.870 --> 02:57:10.180
in I'm sorry, late last month.

02:57:10.180 --> 02:57:13.950
Comments are due on October 22nd

02:57:13.950 --> 02:57:18.650
and it will appear on the
November 5th agenda.

02:57:18.650 --> 02:57:22.300
We encourage people to
provide comments on that

02:57:22.300 --> 02:57:26.870
and also reminder will be
on the November 5th agenda.

02:57:26.870 --> 02:57:27.703
Thank you.

02:57:30.430 --> 02:57:32.500
<v ->Thank you Commissioner
Rechtschaffen.</v>

02:57:32.500 --> 02:57:33.850
Commissioner Guzman Aceves.

02:57:34.966 --> 02:57:36.950
<v ->Thank you, President Batjer.</v>

02:57:36.950 --> 02:57:38.240
As many of you know

02:57:38.240 --> 02:57:42.830
we had a workshop on frontiers
we organization yesterday

02:57:42.830 --> 02:57:44.888
and thank you all for participating.

02:57:44.888 --> 02:57:49.060
I want summarize it other
than just to reflect in general

02:57:49.060 --> 02:57:53.929
that he's used is very
concerning applications

02:57:53.929 --> 02:57:56.060
or you heard the struggles from many

02:57:56.060 --> 02:58:01.060
of their service area
residents that are currently

02:58:02.390 --> 02:58:05.343
struggling, not just with
broadband, but with the voice.

02:58:06.290 --> 02:58:07.658
So I really do.

02:58:07.658 --> 02:58:11.005
We have a lot of work to do
there, and I welcome many

02:58:11.005 --> 02:58:15.965
of your thoughts on
how best to construct this

02:58:15.965 --> 02:58:19.450
the call really important

02:58:19.450 --> 02:58:22.010
enforcement mechanism to
make sure the commitment

02:58:22.010 --> 02:58:24.330
that the company is alleging are

02:58:24.330 --> 02:58:27.623
actually going to see
themselves into reality.

02:58:29.000 --> 02:58:32.130
Other than that a couple
other updates I wanted

02:58:32.130 --> 02:58:34.650
to share that Commissioner
Shiroma and I working

02:58:34.650 --> 02:58:36.930
with the state water
resources control board

02:58:36.930 --> 02:58:41.930
for a workshop on water
customers and the impacts of COVID.

02:58:42.440 --> 02:58:44.543
And that will be on October 30th

02:58:44.543 --> 02:58:49.543
and I welcome your participation
and some, or all of that.

02:58:50.350 --> 02:58:54.330
It will be, as I said, in
partnership with the water board.

02:58:54.330 --> 02:58:57.848
So we'll be looking at both
IOUs and public water systems

02:58:57.848 --> 02:59:02.790
and reflecting on the state
of affairs with these systems

02:59:02.790 --> 02:59:04.970
especially the small systems that

02:59:04.970 --> 02:59:09.766
have particularly
concerning cashflow issues.

02:59:09.766 --> 02:59:14.648
And of course the customers
who are accruing arrearages

02:59:14.648 --> 02:59:16.810
and really trying to get a handle

02:59:16.810 --> 02:59:19.450
on the problem and start
to talk about solutions

02:59:19.450 --> 02:59:22.687
in preparation for next spring

02:59:22.687 --> 02:59:26.713
when the moratorium
is scheduled to be lifted.

02:59:27.686 --> 02:59:32.440
And as you know, we'll be
providing an update on a workshop

02:59:32.440 --> 02:59:35.773
similarly focused on the
energy side in November.

02:59:37.110 --> 02:59:39.046
I also wanted to give a bit

02:59:39.046 --> 02:59:42.488
of a heads up on the California
advanced services fund.

02:59:42.488 --> 02:59:44.620
As you know, this is our broadband

02:59:44.620 --> 02:59:49.620
funding program that is overly
subscribed and that's many

02:59:50.260 --> 02:59:54.210
of our programs are this
particular need is really great.

02:59:54.210 --> 02:59:56.640
And one of the charges that the

02:59:56.640 --> 02:59:59.868
legislature gave us this
budget cycle was due a trailer bill

02:59:59.868 --> 03:00:03.965
on directing us to really
maximize the federal funding

03:00:03.965 --> 03:00:08.965
and federal funding out
play is the FCCS latest round

03:00:10.360 --> 03:00:13.180
of funding known as our doff

03:00:13.180 --> 03:00:18.180
those development, something
fun, and the art off funding.

03:00:19.733 --> 03:00:21.530
Unfortunately the auction
is just going to take place

03:00:21.530 --> 03:00:24.156
later this month October 29th,

03:00:24.156 --> 03:00:25.630
and then the FTC will decide

03:00:25.630 --> 03:00:29.311
on that hopefully early next year.

03:00:29.311 --> 03:00:33.595
And so we put out a
proposal on the proceedings to

03:00:33.595 --> 03:00:37.970
in order to optimize this
funding essentially to wait

03:00:37.970 --> 03:00:40.920
on the pending
applications that were filed

03:00:40.920 --> 03:00:45.920
on May 4th in order wait until
the sec makes their decisions

03:00:46.080 --> 03:00:50.360
in order to see where
one unfortunate part.

03:00:50.360 --> 03:00:52.660
I know President Batjer
sent a letter to the SPC

03:00:52.660 --> 03:00:54.853
in this regard, but was rejected

03:00:54.853 --> 03:00:59.853
is now we don't want to
disadvantage our geographical areas

03:01:00.960 --> 03:01:03.950
and our applicants
to the Ardoch process.

03:01:03.950 --> 03:01:08.620
And the FCC essentially has
a component to a rule that says

03:01:08.620 --> 03:01:13.090
if you're an areola receiving
funding and you're ineligible

03:01:13.090 --> 03:01:16.710
I'm shorthanding that a
lot, but in order to avoid that

03:01:16.710 --> 03:01:18.350
we're going to have to wait

03:01:18.350 --> 03:01:21.480
until after the STC makes a decision.

03:01:21.480 --> 03:01:25.560
And this was, you know, it
is alpha comment, but it's not

03:01:25.560 --> 03:01:29.330
it is something that we are
essentially obligated to do

03:01:29.330 --> 03:01:31.210
with this trailer bill.

03:01:31.210 --> 03:01:34.130
And we really want to
draw down as much funding

03:01:34.130 --> 03:01:37.250
but that does mean a
delay in making a decision

03:01:37.250 --> 03:01:41.760
on those applications
until after the SPC acts.

03:01:41.760 --> 03:01:43.230
Now, I do want to say

03:01:43.230 --> 03:01:46.490
that there is still a lot of
work that's coming forward

03:01:46.490 --> 03:01:49.931
for those projects that do
not have the federal overlay

03:01:49.931 --> 03:01:52.490
and staff is currently working on those.

03:01:52.490 --> 03:01:57.490
And so we should be seeing
those approvals next month.

03:01:57.680 --> 03:01:58.950
So I'm very excited about that

03:01:58.950 --> 03:02:01.630
in those getting going that did want

03:02:01.630 --> 03:02:03.690
to just give everyone
a general awareness

03:02:03.690 --> 03:02:06.700
that for those applications that

03:02:06.700 --> 03:02:10.120
have significant federal
overlap, we are going to wait

03:02:10.120 --> 03:02:11.410
until the SEC acts

03:02:11.410 --> 03:02:14.433
in order to draw down more
federal funding for our state.

03:02:15.345 --> 03:02:17.980
And finally, I wanted to reflect

03:02:17.980 --> 03:02:20.660
about the latest community
that we have engaged

03:02:20.660 --> 03:02:23.660
with on their need or connectivity.

03:02:23.660 --> 03:02:27.610
I know I talked before about
a meeting with the focused

03:02:27.610 --> 03:02:31.090
on the city of Salinas, where
we saw the two young girls

03:02:31.090 --> 03:02:33.490
you know, homework
outside of the taco bell.

03:02:33.490 --> 03:02:35.680
And what came about
during that conversation

03:02:35.680 --> 03:02:39.006
we assumed as about
eight superintendents.

03:02:39.006 --> 03:02:40.517
I think I mentioned last
time he was a teacher

03:02:40.517 --> 03:02:42.460
and the superintendent said

03:02:42.460 --> 03:02:44.620
you know, yes, we have an urban me.

03:02:44.620 --> 03:02:46.559
That's the biggest need where

03:02:46.559 --> 03:02:47.950
kids cannot afford the internet

03:02:47.950 --> 03:02:49.800
which of course Commissioner Shiroma

03:02:49.800 --> 03:02:52.770
Lifeline decision will
hopefully assist in that.

03:02:52.770 --> 03:02:57.240
The other issue are still
these communities that are

03:02:57.240 --> 03:03:02.240
at the edge of service areas
that for one reason or another

03:03:02.500 --> 03:03:05.230
that current internet
service providers at

03:03:05.230 --> 03:03:08.100
and T Comcast charter
and a couple of others

03:03:08.100 --> 03:03:12.670
in this case have decided
not to extend service

03:03:12.670 --> 03:03:13.847
to this community.

03:03:13.847 --> 03:03:15.643
And the community is called San Diego.

03:03:15.643 --> 03:03:18.321
It's an old farm worker camp
in Monterey County, you know

03:03:18.321 --> 03:03:23.321
and I just want to highlight
this because it's one

03:03:25.000 --> 03:03:27.563
of those areas where we have this

03:03:27.563 --> 03:03:31.950
disenfranchised meant
happening with communities that

03:03:31.950 --> 03:03:34.690
are low income and are even red lines

03:03:34.690 --> 03:03:36.470
by these internet service providers.

03:03:36.470 --> 03:03:41.030
So I really want to
call on any of them at

03:03:41.030 --> 03:03:45.210
and T Comcast charter to
extend your service as quickly

03:03:45.210 --> 03:03:47.410
as possible to the community

03:03:47.410 --> 03:03:50.850
of San Diego there's
a few dozen kids there.

03:03:50.850 --> 03:03:54.081
And what happens now is the
little community hall they have

03:03:54.081 --> 03:03:56.785
and it's bringing, it has

03:03:56.785 --> 03:03:58.270
like a wisp services, very not great.

03:03:58.270 --> 03:03:59.970
Anyway, that's a community hall.

03:03:59.970 --> 03:04:01.440
There has service

03:04:01.440 --> 03:04:04.490
and what ends up happening
is all the kids are going there.

03:04:04.490 --> 03:04:06.740
It's functionally you know,

03:04:06.740 --> 03:04:08.370
doing exactly what we
don't want them to do

03:04:08.370 --> 03:04:11.940
which is to gather in a
group and they're doing that

03:04:11.940 --> 03:04:15.240
in order to try to get their education.

03:04:15.240 --> 03:04:18.459
So this is a very urgent situation.

03:04:18.459 --> 03:04:21.890
The quickest solution, of
course, we've been talking

03:04:21.890 --> 03:04:24.860
about these longer term
solutions about local governments

03:04:24.860 --> 03:04:26.820
you know, being able to really foster

03:04:26.820 --> 03:04:29.760
and enable more public
private partnerships

03:04:29.760 --> 03:04:34.760
but we need these
private ISP to step up.

03:04:35.100 --> 03:04:38.610
And we have a current
fund funding element

03:04:38.610 --> 03:04:40.682
of the CSS program called the

03:04:40.682 --> 03:04:42.325
line extension program that has been

03:04:42.325 --> 03:04:45.564
has not been drawn upon from them.

03:04:45.564 --> 03:04:48.710
So with that, I just
want to let you know

03:04:48.710 --> 03:04:51.445
that I'll be making every
effort to call them to the table

03:04:51.445 --> 03:04:54.899
to see how we can help
them make these connections.

03:04:54.899 --> 03:04:58.110
But it's just another example

03:04:58.110 --> 03:05:02.880
of a community where, again, according

03:05:02.880 --> 03:05:06.170
to the local folks, there
there's an at and T lines

03:05:07.339 --> 03:05:10.000
off the street from the community

03:05:10.000 --> 03:05:15.000
fiber and this community
is not connected.

03:05:15.210 --> 03:05:17.150
So, you know

03:05:17.150 --> 03:05:20.810
we obviously need a much
bigger federal overhaul here

03:05:20.810 --> 03:05:24.210
but this is a call to action to them.

03:05:24.210 --> 03:05:28.090
And I hope that they will be responsive.

03:05:28.090 --> 03:05:29.090
Thank you very much.

03:05:31.820 --> 03:05:34.637
<v ->I hope AT&amp;T
is listening really.</v>

03:05:37.052 --> 03:05:39.550
Anyway. Thank you very much.

03:05:39.550 --> 03:05:41.690
And Commissioners thank
you for all of your health

03:05:41.690 --> 03:05:46.690
for reporting actually finishes
our public meeting today.

03:05:49.160 --> 03:05:51.490
So the public meeting is adjourned.

03:05:51.490 --> 03:05:52.913
Thank you all very much.

03:05:55.150 --> 03:05:56.033
<v ->Thanks, bye.</v>